USD/JPY is expected to keep its consolidation unchanged within the 128.40-131.00 range in the next weeks, noted FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we expected the sharp pullback in USD to ‘extend to 129.60’. Our expectations did not materialize as USD dropped to 129.79 before rebounding. Downward pressure has eased and USD is likely to consolidate and trade sideways between 129.80 and 130.70.”

Next 1-3 weeks: “We continue to hold the same view as from yesterday (10 May, spot at 130.10). As highlighted, USD appears to have moved into consolidation phase and is likely to trade between 128.40 and 131.00.”