Scope for USD to grind lower and test 144.95 vs Japanese Yen (JPY); a sustained break below this level seems unlikely. In the longer run, upward momentum has dissipated; USD is expected to consolidate in a range of 144.50/148.50 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Scope for USD/JPY to grind lower and test 144.95

24-HOUR VIEW: "Our view for USD to 'trade in a sideways range of 145.70/147.50' yesterday was incorrect, as it slipped lower to 145.41. The decline did not result in a clear increase in downward momentum. On the other hand, the softness has not quite stabilised. Today, there is scope for USD to grind lower and test 144.95. A sustained break below this level seems unlikely. The major support at 144.50 is also unlikely to come under threat. On the upside, resistance levels are at 146.00 and 146.55."

1-3 WEEKS VIEW: "We revised our USD view to neutral yesterday (15 May, spot 146.80). We indicated that 'upward momentum has dissipated, and USD has likely entered a consolidation phase.' We held the view that USD 'is expected to trade in a range of 144.50/148.50 for now.' There is no change in our view."