USDJPY faces further range bound trading, likely between 138.50 and 142.50, in the next weeks, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Last Friday, we held the view that USD ‘is unlikely to advance further’ and we expected it to ‘trade between 139.50 and 140.80’. USD subsequently traded within a narrower range than expected (139.62/140.50). Momentum indicators are mostly neutral and we expect USD to trade sideways today, likely within a range of 139.65/140.60.”

Next 1-3 weeks: “Our update from last Friday (18 Nov, spot at 140.30) still stands. As highlighted, USD appears to have moved into a consolidation phase and is likely to trade within a range of 138.50/142.50 for the time being.”