USD/JPY is still expected to keep the trade within the 138.50-141.00 range in the next few weeks, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: We expected USD to trade between 139.10 and 139.95 yesterday. However, after dropping briefly to a low of 139.00, USD soared to 140.30 and then closed at 140.21 ( 0.44%). The outlook appears to be mixed and today, we expect USD to trade in a range of 139.20/140.50.

Next 1-3 weeks: Our most recent narrative was from last Thursday (08 Jun, spot at 139.95) wherein USD “is likely to trade between 138.50 and 141.00”. There is no change in our view for now.