USD/JPY consolidative near term – UOB

The pair is expected to continue its sideline patter for the time being, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “The strong 106.60 support was unthreatened as USD rebounded smartly from a low of 106.68. While upward momentum is not that strong, the recovery has scope to extend above last week’s top near 107.50 but a break of the next resistance at 107.90 seems unlikely. Support is at 106.95 followed by the still rather strong level of 106.60”.

Next 1-3 weeks: “There is not much as USD continues to trade in a surprisingly quiet manner (the range since lasts Thursday has been less than 100 pips, between 106.60 and 107.49). We continue to hold a neutral stance but on shorter-term note, the undertone has improved and this could lead to a move above 107.50 but at this stage, any up-move is unlikely to break above the top of our expected 106.20/107.90 consolidation range”.