USD/JPY is likely to trade in a range between 148.20 and 149.15 – UOB Group

US Dollar (USD) is likely to trade in a range between 148.20 and 149.15. In the longer run, renewed upward momentum suggests USD could reach 149.15; it is unclear whether it could continue to rise to 149.55, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD//JPY might not continue to rise to 149.55

24-HOUR VIEW: "Our view for USD to trade in a range of 147.30/148.00 yesterday was incorrect. Instead of trading in a range, USD soared, reaching a high of 148.90. While the sharp and swift rise appears excessive, there is no sign of a potential pullback just yet. Overall, USD is likely to trade in a range today, most likely between 148.20 and 149.15."

1-3 WEEKS VIEW: "Last Friday (19 Sep, spot at 148.00), we highlighted that USD 'could continue to advance, but it is unclear for now if it can reach 149.15.' After USD traded in a range for a few days, we revised our view yesterday (24 Sep, spot at 147.60), indicating that 'upward momentum has largely faded, and from here, we expect USD to trade in a range between 146.50 and 148.50.' Our revision in view was ill-timed, as USD soared to a high of 148.91. While the renewed upward momentum suggests USD could reach 149.15, it is currently unclear whether it could continue to rise toward the next major resistance at 149.55. To maintain the momentum, USD must hold above 147.70 (‘strong support’ level)."