USD/JPY set to settle in a wide 140-145 range – OCBC

USD/JPY sticks to modest gains on Friday around the 143 level. A wide range of 140-145 may persist, according to economists at OCBC.

Risks skewed to the downside

“Daily momentum turned mild bearish while RSI fell. Risks skewed to the downside.”

“Resistance at 145 levels.”

“Support at 141.50 levels (23.6% Fibo retracement of Jul low to Sep high), 140.40 levels.”

“Trades in 140-145 range could still suffice for now.”

“Intervention may slow the pace of JPY depreciation but the move alone is not likely to alter the underlying trend unless USD/ UST yields turn lower or BoJ changes policy stance.”