According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/JPY seems to have now moved to a consolidative phase within the 134.00-136.50 range in the next weeks.

Key Quotes

24-hour view: “Our view for a weaker USD yesterday was incorrect as it rebounded to a high of 135.54. The rebound has scope to extend but any advance is unlikely to break the strong resistance at 136.00. On the downside, a breach of 134.90 (minor support is at 135.20) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Our latest narrative was from last Friday (24 Jun, spot at 134.85) where the recent pullback in USD has scope to extend to 133.50. USD has not been able to make much headway on the downside and downward pressure has more or less dissipated. In other words, USD is not expected to move to 133.50. Overall, USD is likely to trade within a range of 134.00/136.50 for now.”