Further upward bias in USD/JPY remains focused on the 134.80 region for the time being, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we held the view that USD ‘is unlikely to advance much further’ and we expected it to trade sideways between 133.80 and 134.80. Our view of sideways trading was not wrong even though USD traded in a narrower range than expected (133.85/133.70). Further sideways trading appears likely but the slightly softened underlying tone suggests a lower range of 133.50/134.50.”

Next 1-3 weeks: “We continue to hold the same view as from Monday (17 Apr, spot at 133.80) wherein while it is too early to expect the start of a sustained advance in USD, it is likely to trade with an upward bias to 134.80. Looking ahead, it has to break clearly above this level before further gains can be expected. The next resistance above 134.80 is at 135.50. Overall, only a breach of 133.00 (no change in ‘strong support’ level from yesterday) would suggest that the upward bias has eased.”