According to FX Strategists at UOB Group, further advance in USD/JPY seems unlikely and the pair could now move into a 114.75-116.05 range.

Key Quotes

24-hour view: “We highlighted yesterday that USD “could retest 115.00 but a sustained decline below this level is unlikely”. Our view was not wrong as USD dropped to 114.99 before rebounding. Downward pressure has eased and USD is likely to consolidate and trade sideways for today, expected to be between 115.10 and 115.80.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (14 Feb, spot at 115.40). As highlighted, the current movement is viewed as part of a consolidation and USD is likely to trade between 114.75 and 116.05 for now. Looking ahead, a break of 114.75 could potentially trigger a deep decline in USD.”