USD/JPY faces further consolidation near term – UOB

FX Strategists at UOB Group are of the view that USD/JPY should remain within the 107.00-109.00 range in the next weeks.

Key Quotes

24-hour view: “USD spent another day going ‘nowhere’ as it traded within a tight range of 39 pips last Friday (between 107.36 and 107.75). Indicators are mostly ‘flat’ and USD could continue to consolidate for now. Expected range for today, 107.25/107.95.”

Next 1-3 weeks: “After USD rebounded from a low of 106.96, we highlighted last Thursday (16 Apr, spot at 107.70) that ‘the recovery in USD could extend higher but any advance is viewed as part of a 107.00/109.00 range’. Since then, USD has traded in a quiet manner and within narrow ranges. The underlying tone still appears to be on the positive side but for overall, USD could continue to trade between 107.00 and 109.00 for now.”