Extra range bound within 128.40 and 131.00 is likely in USD/JPY 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 USD to ‘consolidate and trade sideways between 129.80 and 130.70’. USD did not quite consolidate as it traded in a volatile manner between 129.43 and 130.81. Despite the volatile price actions, the underlying tone has softened and we downside risk for USD today. That said, any weakness is expected to encounter strong support at 129.20. Resistance is at 130.00 followed by 130.30.”

Next 1-3 weeks: “We continue to hold the same view as from Tuesday (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.”