The USD/JPY is still seen within the range of 126.90-129.40 in the coming weeks, suggested Lee Sue Ann and Quek Ser Leang, currency strategists at the UOB Group.
Key comments
24 hour view: “We highlighted yesterday that USD/JPY ‘could strengthen further.’ We added that ‘only a break of 128.30 would indicate that the current strong bullish pressure has eased’. USD/JPY subsequently rose to 129.40 and then fell sharply to a low of 127.44 before bouncing back. The price action suggests that USD/JPY has probably moved into a consolidation phase. For today, USD/JPY is likely to move sideways between 127.40 and 128.80.”
Next 1-3 weeks: “We highlighted yesterday (April 20, USD/JPY at 129.10) that there is no end to the current rally in USD/JPY. We added that ‘only a break of 127.70 would indicate that the rally in USD/JPY is ready to take a breather. In other words, we did not expect the retracement after the 127.44 low.The current move is seen as the early stages of a consolidation phase and USD/JPY is likely to trade within a range of 126.90/129.40 per now”.
Source: Fx Street
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