The likelihood that USD/JPY could visit the 134.20 region seems to be losing momentum, comment UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

24-hour view: “We expected USD to trade between 132.55 and 133.55 yesterday. However, USD traded in a wider range than expected (132.19/133.75). The price actions appear to be part of a broad consolidation range. Today, USD is likely to trade in a range of 131.90/133.40.”

Next 1-3 weeks: “Our latest narrative was from last Thursday (30 Mar, spot at 132.60) wherein the rebound in USD could extend to 134.20 but a sustained rise above this level is unlikely. Yesterday (03 Apr), USD rose briefly to 133.75 before retreating sharply. Upward momentum is beginning to slow and the chances of 134.20 coming into view are diminishing. However, only a break of 131.90 (no change in ‘strong support’ level from yesterday) would indicate that USD has moved into a consolidation phase.”