The upward bias in USD/JPY appears to be diminishing, according to Markets Strategist Quek Ser Leang and Economist Lee Sue Ann of UOB Group.
Important Quotations Day and Night: “Although USD is likely to trade with an upward bias, it is unlikely to break the main barrier at 134.40 today, as we noted yesterday. “Support is at 133.20, followed by 132.70,” we further stated. The Dollar increased to 134.04 in Asian trade, but it fell to a low of 132.72 in NY trade. The current movement is probably a part of a consolidation phase as the upward pressure has subsided. We anticipate that the USD will move in the 132.60–133.70 area today.
Within the next three weeks: “From the week’s beginning, we have anticipated a higher USD. When the USD increased, we noted on Tuesday (11 April, spot around 133.30) that the USD would stabilise for a few days before gaining ground to 134.40. Yesterday (13 April), Dollar barely managed to reach a new high of 134.04 before falling back. The likelihood of USD rising to 134.40 is decreasing as upward impetus starts to wane. Yet, the only indication that the USD is not gaining further would be a breach of 132.20 (a level that has remained a “strong support” level).