Ella 
Yesterday we expected USD/JPY to trade within the 147.50/148.10 range. We were not expecting such extreme volatility, with the pair fluctuating between 147.46 and 148.36 before closing at 148.33 (+0.32%). The rally has gained momentum, albeit modestly. The pair is likely to move higher today, but is unlikely to threaten the main resistance level of 149.00. To maintain momentum, the price must stay above 147.90 (minor support is at 148.10).
Next 1-3 weeks: Our latest view, from three days ago (September 18, spot price was 147.80), is that “upward momentum has increased slightly and the pair may move higher to 148.40, but a sustained move above this level is likely Not much. The upward momentum has further strengthened, and the exchange rate still has room to rise to 149.00. Overall, only a breakthrough of 147.45 (the previous “strong support level” of 147.00) can indicate that the current upward pressure has weakened.
