A test of the 133.30 region in USD/JPY now appears to be fizzling out, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We expected USD to edge higher yesterday. However, USD dropped to 130.33 before rebounding strongly to close at 131.56 (+0.14%). The advance could extend but a break of 132.20 is unlikely. Support is at 131.15, followed by 130.75.”

Next 1-3 weeks: “Our update from two days ago (08 Feb, spot at 130.90) still stands. As highlighted, while the outlook for USD is still positive, the prospect of it rising to 133.35 has decreased. Overall, only a breach of 130.20 (no change in ‘strong support’ level) would indicate that USD is not advancing further.”