USD/JPY now sees the likelihood of a decline to the 133.00 region somewhat dwindled, noted UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Our expectations for the ‘rebound in USD to extend’ did not materialize as it traded between 134.62 and 135.29 before closing slightly higher at 135.08 (+0.19%). The price movements appear to be consolidative and we expect USD to trade sideways today, likely in a range of 134.55/135.55.”

Next 1-3 weeks: “After USD plummeted to a low of 133.49, we highlighted last Friday (05 May, spot at 134.05) that ‘while USD could continue to decline, short-term conditions are severely oversold and it remains to be seen if USD has enough momentum to break the solid support level near 133.00’. USD has not been able to make further headway on the downside as it rebounded the last couple of days. The odds for USD to weaken further to 133.00 have diminished. However, only a breach of 135.85 (‘strong resistance’ level was at 136.05 yesterday) would suggest that the weakness in USD has stabilized.”