USD/JPY: Consolidation; wait to sell rallies – OCBC

USD/JPY traded rangebound. Pair was last at 147.88, OCBC's FX analysts Frances Cheung and Christopher Wong note. 

Bias remains to sell rallies

"Daily momentum is flat while RSI rose. Cautious of short term rebound risks but retain bias remains to sell rallies. Resistance at 150.50, 151.50 (38.2% fibo retracement of Sep low to Jan high). Support at 148.80 before 147 (61.8% fibo). Trump tariff threats (on reciprocal tariffs) and dividend seasonality trends may pose intermittent upside pressure for USD/JPY." 

"Sell rallies preferred, as growing Fed-BoJ policy divergence should continue to anchor the broad direction of travel of USDJPY to the downside."