The upside bias in USD/JPY looks firm for the time being, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We expected USD to trade sideways between 131.50 and 133.00 yesterday. However, USD chopped between 131.50 and 133.31 before closing at 133.11 (+0.54%). Upward momentum has firmed slightly but while USD is likely to edge higher, the major resistance at 134.00 is unlikely to come into view today (there is another resistance level at 133.50). Support is at 132.40, followed by 132.00.”

Next 1-3 weeks: “Two days ago (13 Feb, spot at 131.50), we highlighted the outlook for USD is mixed and we expected it to trade in a broad range of 130.00 and 133.00. Yesterday, USD rose to a high of 133.31 before closing at 133.11 (+0.54%). Upward momentum appears to be building and there is room for USD to edge higher. That said, the major resistance at 134.00 might not come into view so soon. On the downside, a break of 131.40 would indicate that the build-up in momentum has fizzled out.”