USD/JPY is still consolidating – UOB Group

Bias for US Dollar (USD) is tilted to the upside vs Japanese Yen (JPY), with scope for a test of 144.30. In the longer run, USD is still consolidating; moderating price swings point to a tighter range of 142.20/145.30, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Moderating price swings point to a tighter range of 142.20/145.30

24-HOUR VIEW: "Yesterday, we expected USD to 'consolidate in a 142.20/144.00 range.' USD then traded between 142.36 and 143.99 before closing at 143.82, up by 0.99%. The firmer underlying tone indicates the bias for USD is tilted to the upside today, with scope for a test of 144.30. Support is at 143.50; a breach of 143.00 would indicate that the current upward bias has eased."

1-3 WEEKS VIEW: "In our latest narrative from two days ago (06 May, spot at 143.00), we indicated that USD 'has likely entered a consolidation phase.' We expected it to 'trade between 142.20 and 146.70 for now.' While we maintain our consolidation view, moderating price swings point to a tighter range of 142.20/145.30 in the near term."