Outlook is unclear after the sharp swings; US Dollar (USD) could trade in a choppy manner between 152.00 and 154.00 against the Japanese Yen (JPY). In the longer run, upward momentum has largely faded; USD is likely to trade in a 151.00/155.00 range for the time being, OCBC's FX analysts Frances Cheung and Christopher Wong note.

USD is likely to trade in a 151.00/155.00 range

24-HOUR VIEW: "Following the surge in USD on Wednesday, we indicated yesterday (Thursday) that 'the rally appears to be overdone, and USD is unlikely to rise much further.' We held the view that USD 'is more likely to consolidate between 153.30 and 154.85.' We did not expect the subsequent price movements as after rising to a high of 154.66, USD plunged and gave up almost all of the previous day’s strong gains (low has been 152.68). The outlook for today is unclear after the sharp swings, and USD could continue to trade in a choppy manner, likely between 152.00 and 154.00."

1-3 WEEKS VIEW: "We highlighted yesterday (13 Feb, spot at 154.25) that 'while USD could continue to rise, deeply overbought conditions suggest that any advance may not reach the major resistance at 155.80.' We also highlighted that 'a breach of 152.50 would indicate that USD is not rising further.' In a surprising move, USD plunged and gave up most of its gains, reaching a low of 152.68. While our ‘strong support’ level at 152.50 has not been breached yet, upward momentum has largely faded. For the time being, USD is likely to trade in a 151.00/155.00 range."