USD/JPY can trade in a range between 148.50 and 150.50 – UOB Group

Outlook is unclear; US Dollar (USD) could trade in a range between 148.50 and 150.50 vs Japanese Yen (JPY). In the longer run, bias for USD is slightly tilted to the downside; unclear for now whether it can break and stay below 148.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Bias for USD is slightly tilted to the downside

24-HOUR VIEW: " Yesterday, we indicated that 'there is a chance for the overbought USD to test 151.20.' We did not anticipate the volatile price action, as after rising to 151.31, USD plunged to a low of 149.08. The outlook for today is unclear after the choppy price movements. Today, USD could trade in a broad range between 148.50 and 150.50."

1-3 WEEKS VIEW: "After maintaining a negative USD view since the middle of Feb, we highlighted yesterday (03 Mar, spot at 150.80) that 'Not only has downward momentum faded, but upward momentum has increased somewhat.' We were of the view that 'the price movement is part of a rebound that could potentially reach 151.90.' Our view was invalidated quickly, as after rising to 151.31, USD plunged and broke below our ‘strong support’ level at 149.45 (low has been 149.08). Although the sharp drop has resulted in an increase in momentum, it is unclear for now whether USD can break and stay below last week’s low, near 148.50. Overall, the bias for USD appears to be slightly tilted to the downside, as long as 151.00 is not breached."