The probability that USD/JPY could slip back to the 133.00 area, it seems out of favor for now, commented economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group.
Key quotes
24-hour view: “Yesterday we noted ‘price action appears to be consolidating’ and expected the USD to ‘trade sideways in the 134.55/135.55 range’. The USD traded sideways as expected, albeit in a narrower 134.71/135.35 range. Further sideways trading seems likely, expected to be between 134.70 and 135.55.
Next 1-3 weeks: “Our update from yesterday (May 9, spot at 135.10) still stands. As highlighted, after falling to a low of 133.49 last Friday, the USD was unable to make further downward progress. Chances of further USD weakness to 133.00 have decreased. However, only a break of 135.85 (no change to the ‘strong resistance’ level from yesterday) would indicate that USD weakness has stabilised.”
