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.
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.”