Ella 
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Our call for USD/JPY to “go above last week’s high of 146.55” did not materialize as it traded within the 145.51/146.39 range. This appears to be part of a consolidation phase. Today we expect the exchange rate to trade sideways between 145.35-146.30.
Next 1-3 weeks: Our view is unchanged from yesterday (Aug 22 market price 146.20). As we highlighted, while the pair bounced off 144.92, the upside momentum has barely picked up. However, the exchange rate has room to rise above last week’s high around 146.55, but whether it has enough momentum to push it to the next important resistance level of 147.50 remains to be seen. Overall, only a break above 144.50 (‘strong support’ level unchanged) would suggest further gains are not in sight.
