USD/JPY: To trade in an erratic manner – UOB Group

US Dollar (USD) could continue to trade in an erratic manner, probably in a range of 154.50/156.00. In the longer run, for the time being, USD is likely to trade in a 153.70/156.70 range, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD is likely to trade in a 153.70/156.70 range

24-HOUR VIEW: “Our view for USD to rise above 156.00 yesterday was incorrect. USD rose to 155.88, plummeted to 154.00 before rebounding quickly to close at 154.75. It continues to rise in early Asian trade today. We are unable to derive much from the price movements. Today, USD could continue to trade in an erratic manner, probably in a range of 154.50/156.00.”

1-3 WEEKS VIEW: “We indicated yesterday that ‘while short-term upward momentum is building, it is premature to expect a sustained advance.’ We added, ‘the bias is tilted to the upside, but at this time, we view any advance as part of a higher trading range of 154.30/157.20.’ USD then fell below 154.30 before rebounding strongly from 154.00. The buildup in short-term momentum has eased. From here, we expect USD to trade in a broad range, probably between 153.70 and 156.70.”