Outlook is mixed; US Dollar (USD) could trade in a choppy manner between 156.20 and 157.20. In the longer run, USD is likely to trade in a range between 155.60 and 157.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/JPY is likely to trade in a range

24-HOUR VIEW: "We stated yesterday that 'the increase in momentum is likely to lead to further advance, but the resistance at 157.50 is likely out of reach for now'. USD subsequently rose to 157.29 and then, in a sudden move, plummeted to a low of 156.09 in the NY session. USD rebounded from the low and continued to rebound in the early Asian trade today. The sharp but short-lived swings have resulted in a mixed outlook. Today, USD could continue to trade in a choppy manner, likely between 156.20 and 157.20."

1-3 WEEKS VIEW: "Yesterday (05 Jan, spot at 157.05), we indicated that USD 'is facing mild upward pressure and could drift higher and test 157.50'. We added, 'to sustain the mild upward momentum, USD must not break below 156.35 (‘strong support’ level)'. However, after rising to a high of 157.29, USD dropped sharply and broke below our ‘strong support’ level (low of 156.09). The mild upward pressure has eased, and from here, we expect USD to trade in a range, most likely between 155.60 and 157.50."