USD/JPY is expected to keep the 126.90-129.40 range for the time being, suggested FX Strategists at UOB Group Quek Ser Leang and Lee Sue Ann.

Key Quotes

24-hour view: “We expected USD to ‘trade within a range of 128.00/129.00’ last Friday. USD subsequently traded within a wider range than expected (127.72/129.10). Further range trading appears likely even though the slightly firmed underlying tone suggests a higher range of 128.00/129.20.”

Next 1-3 weeks: “Our view from last Thursday (21 Apr, spot at 128.20) still stands. As highlighted, USD has likely moved into a consolidation phase and is expected to trade within a range of 126.90/129.40 for now. Looking ahead, if USD closes above 129.40, it would signal the start of the next up-leg in USD.”