USD/JPY is now expected to trade within the 138.50-141.00 range in the short-term horizon, suggest Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: We expected USD to trade between 139.00 and 139.90 yesterday. USD then traded in a narrower range than expected (139.05/139.76). The price movements still appear to be part of a range-trading phase. Today, we expect USD to trade between 139.10/139.95.

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.