Extra losses in USD/JPY seems unlikely for the time being, exposing instead a potential consolidation between 134.00 and 139.00, suggest UOB Group’s Market Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: “We expected USD to ‘trade between 135.00 and 137.20’ yesterday. USD subsequently traded within a range of 135.00/137.20. The price actions appear to be part of a broad consolidation range and USD is likely to trade between 136.00 and 137.70 today.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (06 Dec, spot at 134.65). As highlighted, the recent USD weakness has come to an end. The current price movement is likely the early stages of a consolidation phase and we expect USD to trade between 134.00 and 139.00 for the time being.”