According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/JPY still faces the continuation of the side-lined mood within the 141.00-145.00 range.
24-hour view: “We highlighted last Friday that ‘the price actions appear to be part of a consolidation’ and we expected USD to ‘trade sideways within a range of 142.60/143.70’. Even though our view for sideway-trading was not wrong, USD traded in a narrower range than expected (142.82/1.43.68). The underlying tone has weakened and the bias for USD today is tilted to the downside. However, any weakness is likely limited to a test of 142.20 (minor support is at 142.50). Resistance is at 143.30 followed by 143.60.”
Next 1-3 weeks: “Our latest narrative from last Thursday (15 Sep, spot at 143.10) still stands. As highlighted, USD does not appear to be ready to move above 145.00 in a sustained manner. From here, USD is likely to trade between 141.00 and 145.00 for a period of time.”