Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group see USD/JPY breaking below the 137.15 level in the short term.

Key Quotes

24-hour view: While we expected further USD weakness yesterday, we held the view that “a clear break of 137.15 today will come as a surprise.” We noted, “there is another support at 138.00.” USD fell to a low of 137.91 and then closed at 138.03. In early Asian trade today, USD continues to fall. Today, 137.15 is likely within reach. At this stage, it is premature to expect USD to drop to the next major support at 135.80. Resistance is at 138.20, followed by 138.70. 

Next 1-3 weeks: We have expected USD to weaken since Monday (10 Jul) when it was trading at 142.50. Yesterday (13 Jul, spot at 138.60), we indicated that USD “is still weak and the next level to watch is 137.15.” From here, USD appears likely to break below 137.15. The next level to aim for is the rather formidable support at 135.80. We will continue to expect USD to weaken as long as it stays below 139.50 (‘strong resistance’ level was at 140.50 yesterday).