USD/JPY: Likely to trade in a range between 154.80 and 155.80 – UOB Group

US Dollar (USD) is likely to trade in a range between 154.80 and 155.80. In the longer run, for a sustained decline, USD must first close below 154.65, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

A sustained decline may appear below 154.65

24-HOUR VIEW: "USD fell to 154.49 last Thursday and then rebounded. When USD was at 155.15 on Friday, we indicated that 'there is room for USD to rebound further, but any advance is likely part of a higher range of 154.65/155.60'. The subsequent price movements did not turn out as expected. USD dropped sharply, but briefly, to 154.32 before rebounding to close higher by 0.17% at 155.34. The brief drop did not result in any increase in downward momentum. Today, we expect USD to trade in a range, most likely between 154.80 and 155.80."

1-3 WEEKS VIEW: "In our most recent narrative from last Thursday (04 Dec, spot at 155.20), we highlighted that 'for a sustained decline, USD must first close below 154.65'. On Friday, USD briefly dropped to 154.32 and then rebounded to close at 155.34 (+0.17%). There has been no increase in downward momentum, and our view remains unchanged for now."