Further consolidation in USD/JPY, likely within the 128.00-130.80 range now appears likely in the near term, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “After rising to a high of 130.58, USD pulled back sharply and closed at 129.59 (-0.43%). The pullback has room to extend but is unlikely to break the support at 128.00 (there is another support at 128.50). Resistance is at 129.75, followed by 130.10.”

Next 1-3 weeks: “Sharp pullback in USD/JPY is likely to extend to the 55-week exponential moving average near 131.40. (dated 02 Dec 2022, 136.50).”