Further upside in USD/JPY should remain on the cards while above the 136.90 level according to UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we expected USD to trade within a range of 135.80/136.60. However, USD popped to a high of 136.93 and then dropped sharply to close unchanged at 136.00. Upward momentum has not improved and USD is unlikely to advance further. Today, USD is more likely to trade sideways between 135.70 and 136.90.”

Next 1-3 weeks: “We highlighted on Monday (27 Feb, spot at 136.30) that after the strong rise late last week, upward momentum has been boosted and this will likely lead to further USD strength. We indicated, the next resistance level to watch is at 137.90. While USD rose to a fresh 2-week high of 136.93 yesterday, upward momentum has not improved further. USD must break and hold above 136.90 in the next 1-2 days or the chances of a move to 137.90 will rapidly diminish.”