Outlook is unclear; US Dollar (USD) could trade between 148.80 and 150.70 vs Japanese Yen (JPY). In the longer run, failure to hold below 148.50 suggests USD could enter a period of indecision, trading in a 148.00/151.50 range for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD can enter a period of indecision

24-HOUR VIEW: USD traded in a volatile manner on Monday. Yesterday, we indicated that 'the outlook is unclear after the choppy price action,' and we expected USD to 'trade in a broad range between 148.50 and 150.50.' USD subsequently traded in a volatile manner, dropping to a low and then reversing sharply to reach 149.88. We are still unable to derive much out of the choppy price movements. Today, USD could trade between 148.80 and 150.70."

1-3 WEEKS VIEW: "Yesterday (04 Mar, spot at 149.45), we highlighted that 'the bias for USD is slightly tilted to the downside, but it is unclear for now whether it can break and stay below 148.50.' USD subsequently dropped below 148.50, but it rebounded strongly to close at 149.80 (+0.20%). The failure to hold below 148.50 suggests USD could enter a period of indecision, trading in 148.00/151.50 for now."