USD is likely to trade sideways between 156.00 and 156.75. In the longer run, soft underlying tone suggests there is a chance for USD to edge downward; any decline is likely part of a lower range of 155.05/157.05, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Chance for USD/JPY to edge downward

24-HOUR VIEW: "While we indicated yesterday that 'there is a chance for USD to test 155.55', we pointed out that 'the major support at 155.05 is not expected to come under threat'. USD then declined, but it rebounded from a low of 155.69. Momentum indicators are turning flat, and USD is likely to trade sideways today, probably between 156.00 and 156.75."

1-3 WEEKS VIEW: "In our most recent narrative from two days ago (26 Nov, spot at 156.15), we highlighted that 'the soft underlying tone suggests there is a chance for USD to edge downward, but any decline is likely part of a lower range of 155.05/157.05'. There is no change in our view for now."