USD/JPY is now forecast to keep the 138.50-141.00 range for the time being, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “USD dropped briefly to 139.01 and then rebounded sharply to 140.24 before ending the day at 140.11. The rebound has scope to extend above 140.40. The major resistance at 141.00 is unlikely to come under threat. Support is at 139.55, followed by 139.20.”

Next 1-3 weeks: “USD traded mostly sideways for the past several days. The price actions are likely part of range-trading phase. For the time being, USD is likely to trade between 138.50 and 141.00. Looking ahead, USD has to break clearly above 141.00 before a sustained rise is likely.”