USD/JPY is consolidating within a tighter range of 144.50/147.30 – UOB Group
There has been no further increase in downward momentum; instead of weakening, US Dollar (USD) is likely to trade between 144.60 and 145.70. In the longer run, USD remains in consolidation, but likely within a tighter range of 144.50/147.30, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD remains in consolidation
24-HOUR VIEW: "When USD was at 145.30 in the early Asian session yesterday, we highlighted that 'downward momentum is building, and USD could drop below 144.90.' However, we were of the view that 'the major support at 144.50 is unlikely to come under threat.' We were not wrong, as USD dropped to 144.64 before settling lower by 0.53% at 144.85. There has been no further increase in downward momentum, and instead of weakening today, USD is more likely to trade between 144.60 and 145.70."
1-3 WEEKS VIEW: "We highlighted yesterday (19 Mays, spot at 145.30) that USD 'remains in a consolidation, but we now tighten the range to 144.50/147.30.' We also highlighted that, 'Looking ahead, should USD break clearly below 144.50, it could trigger a deeper decline.' There is no change in our view."
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