A move to the 135.75 in USD/JPY appears to be losing some traction, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

24-hour view: “We noted yesterday that USD ‘appears to have moved into a consolidation phase’, and we expected it to consolidate and trade between 133.60 and 134.60. USD then traded in a range of 133.88/133.74 before closing largely unchanged at 133.22 ( 0.05%). The price actions still appear to be consolidative and today, we expect USD to trade in a range of 133.75/134.60.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (24 Apr, spot at 134.10). As highlighted, upward momentum is beginning to fade and the likelihood of USD advancing to 135.75 is diminishing. However, only a break of 133.50 (no change in ‘strong support’ level) would indicate that the USD strength that started early last week has come to an end.”