USD/JPY is now seen navigating the 134.75-137.00 range in the next weeks, commented FX Strategists at UOB Group Quek Ser Leang and Peter Chia.

Key Quotes

24-hour view: “USD traded between 134.77 and 135.77 before closing at 135.69 (+0.37%). USD traded on a firm note upon opening and upward momentum is beginning to build. From here, USD could edge higher to 136.50. The major resistance at 137.00 is unlikely to come under threat. Support is at 135.60 followed by 135.25.”

Next 1-3 weeks: “Last Friday (01 Jul, spot at 135.90), we indicated, ‘waning upward momentum suggests that the odds for USD to move to 137.50 have diminished’. USD subsequently dropped and took out our ‘strong support’ level at 135.50 (low of 134.74). Despite the strong rebound from 134.74, upward momentum has not improved by much. The current movement appears to be part of a broad consolidation phase and USD is likely to trade between 134.75 and 137.00 for now. Looking ahead, USD has to break clearly above 137.00 before a sustained rise is likely.”