Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group note USD/JPY is still expected to navigate between 130.50 and 134.50 in the next weeks.

Key Quotes

24-hour view: “We expected USD to drift lower yesterday but we were of the ‘131.00 is unlikely to come into view’. Our expectations did not quite materialize as USD dipped briefly to 131.37 before recovering to trade sideways for the rest of the sessions. Flat momentum indicators suggest further sideways trading, likely between 131.60 and 132.75.”

Next 1-3 weeks: “There is not much to add to our update from Monday (09 Jan, spot at 132.10). As highlighted, after the sharp drop last Friday, USD is likely to trade within a broad range of 130.50 and 134.50 instead of rebounding further.”