The bullish bias could push USD/JPY to the 124.30/60 region in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Our expectations for ‘further USD strength to 124.30’ did not materialize as it rose to 124.05 before pulling back. The current movement is viewed as part of a consolidation and USD is likely to trade between 123.10 and 123.95 for today.”

Next 1-3 weeks: “Yesterday (06 Apr, spot at 123.85), we highlighted that upward momentum is building and USD is likely to trade with an upward bias towards 124.30, possibly 124.60. There is no change in our view even though we did not quite expect the subsequent subdued price actions (USD traded in a relatively narrow range of 123.46/124.05). On the downside, a breach of 122.40 (‘strong support’ level was at 121.00 yesterday) would indicate that the build-up in momentum has fizzled out.