The probability that USD/JPY could slip back to the 133.00 region appears not favoured for the time being, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
24-hour view: “We noted yesterday ‘the price movements appear to be consolidative’ and we expected USD to ‘trade sideways in a range of 134.55/135.55’. USD traded sideways as expected albeit in a narrower range of 134.71/135.35. Further sideways trading appear likely, expected to be between 134.70 and 135.55.”
Next 1-3 weeks: “Our update from yesterday (09 May, spot at 135.10) still stands. As highlighted, after plummeting to a low of 133.49 last Friday, USD has not been able to make further headway on the downside. The odds for USD to weaken further to 133.00 have diminished. However, only a breach of 135.85 (no change in ‘strong resistance’ level from yesterday) would suggest that the weakness in USD has stabilized.”
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