In the opinion of Markets Strategist Quek Ser Leang and Economist Lee Sue Ann at UOB Group, USD/JPY is expected to navigate within the 145.50-149.60 range in the next weeks.

Key Quotes

24-hour view: “The strong rise in USD to a high of 147.87 last Friday came as a surprise (we were expecting sideway-trading). USD extended its advance in early Asian trade and is likely to rise further. However, a break of the strong resistance at 148.80 is unlikely (minor resistance is at 148.40). On the downside, a breach of 147.35 (minor support is at 147.70) would indicate that the current upward pressure has dissipated.”

Next 1-3 weeks: “Our latest narrative was from last Thursday (27 Oct, spot at 146.05) where downward momentum is building tentatively and that USD could edge lower. USD subsequently dipped to 145.10 before rebounding strongly and the build-up in downward momentum faded quickly. USD appears to have moved into a consolidation phase and is likely to trade between 145.50 and 149.60 for the time being.”