USD/JPY is likely to extend the 138.50-141.00 range in the next few weeks, according to UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: We highlighted last Friday that “there is room for USD to test 138.50 before the risk of a rebound increases”. However, USD rebounded from 138.74 to 139.72 and then traded mostly sideways for the rest of the sessions. The price actions are likely part of a consolidation and today, USD is likely to trade between 139.00 and 139.90.

Next 1-3 weeks: Our most recent narrative was from last Thursday (08 Jun, spot at 139.95) wherein USD “is likely to trade between 138.50 and 141.00”. There is no change in our view for now.