USD/JPY’s rally appears over and it could now navigate within the 121.00-124.50 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘trade between 121.50 and 122.70’ yesterday. We underestimated the volatility as USD traded within a wider range than expected (121.30/123.20). The underlying tone firmed somewhat and USD could move higher to 123.30. The major resistance at 124.50 is not expected to come into the picture. Support is at 121.60 followed by 121.30.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (30 Mar, spot at 122.80). As highlighted, the recent USD rally has come to an end. USD appears to have moved into a consolidation phase and is likely to trade between 121.00 and 124.50 for now.”