USDJPY faces further range-bound trading, likely between 138.50 and 142.50, in the next weeks, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

USDJPY KEY QUOTE

24-hour view: “Last Friday, we held the view that USD ‘is unlikely to advance further and we expected it to ‘trade between 139.50 and 140.80’. USD subsequently traded within a narrower range than expected (139.62/140.50). Momentum indicators are mostly neutral and we expect USD to trade sideways today, likely within a range of 139.65/140.60.”

Next 1-3 weeks: “Our update from last Friday (18 Nov, spot at 140.30) still stands. As highlighted, USD appears to have moved into a consolidation phase and is likely to trade within a range of 138.50/142.50 for the time being.

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