Ella 
24-hour view: Last Friday, we thought that USD/JPY could test the key support level of 138.50, but “it is unclear whether USD/JPY can gain a foothold below this level. We did not expect USD/JPY to fluctuate wildly within a wide range of 138.05/141.18 before closing strongly above 141.15 (+1.23%). The choppy price action has resulted in a mixed outlook. USD/JPY is likely to remain choppy, but likely to trade within a narrow range at 139.70/141.60.
Next 1-3 weeks outlook: We noted last Friday (July 28th when the price was at 139.40) that “downward momentum is starting to gather again”. We also note that USD/JPY “must clearly break below key support at 138.50 before further weakness is likely. Volatile price action and a wide intraday range lead to a mixed outlook. Currently, USD/JPY is likely to trade between 138.50 and 141.95 Between the shock trading.
