USD/JPY: Major support at 144.50 is unlikely to come under threat – UOB Group

US Dollar (USD) could drop below 144.90 against Japanese Yen (JPY); the major support at 144.50 is unlikely to come under threat. 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: "We expected USD to 'grind lower and test 144.95' last Friday. However, we indicated that 'a sustained break below this level seems unlikely.' We added, 'The major support at 144.50 is also unlikely to come under threat.' USD edged to a low of 144.90 in the early London session, rebounding to close largely unchanged at 145.62 (-0.03%). USD traded on a soft note in early Asian trade today. Downward momentum is building, and USD could drop below 144.90. However, the major support at 144.50 is unlikely to come under threat. Resistance is at 145.80, followed by 146.30."

1-3 WEEKS VIEW: "In our update from last Thursday (15 May, spot at 146.80), we indicated that USD 'has likely entered a consolidation phase.' We expected USD to 'trade in a range of 144.50/148.50.' USD remains in a consolidation, but we now tighten the range to 144.50/147.30. Looking ahead, should USD break clearly below 144.50, it could trigger a deeper decline."