In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, further consolidation could motivate USD/JPY to trade between 129.50 and 133.50 in the next few weeks.
24-hour view: “USD soared as it surged to a high of 132.71 before easing off to close higher by 1.24% (132.62). The pullback from the high amid overbought conditions suggests USD is unlikely to advance much further. Today, USD is likely to trade sideways between 131.30 and 132.80.”
Next 1-3 weeks: “On Tuesday (Jan 3) the USD dropped to 129.50 before rapidly recovering. Downward pressure appears to have eased and USD has likely moved into a consolidation phase. From here, USD is likely to trade between 129.50 and 133.50 for a period of time.”