In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, USD/JPY remains poised to extend the 134.50/137.10 range in the next few weeks.

Key Quotes

24-hour view: “We expected USD edge lower yesterday but we were of the view that ‘a sustained decline below 135.50 is unlikely’. Our view was not wrong as USD dropped to 135.36 before rebounding to end the day little changed at 135.91 (+0.04%). USD appears to have moved into a consolidation phase and it is likely to trade in a range of 135.60/136.35 today.”

Next 1-3 weeks: “Our update from yesterday (06 Mar, spot at 135.90) still stands. As highlighted, the recent USD strength has ended. USD appears to have moved into a consolidation phase and it is likely to trade within a range of 134.50/137.10 for now.”