USD/JPY faces a mixed outlook – UOB

The price action in USD/JPY is expected to be between 106.40 and 107.80 for the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While our expectation for USD to strengthen yesterday was correct, our view that ‘107.40 is likely out of reach’ was not as USD popped to a high of 107.45 before easing off quickly. Upward pressure is beginning to ease but it is too soon to expect a sustained pull-back. For today, USD is more likely to consolidate and trade between 106.90 and 107.40.”

Next 1-3 weeks: “The downward pressure in USD that started more than 2 weeks ago has ended when USD moved above the 107.20 ‘strong resistance’ level yesterday. From here, the outlook for USD is mixed and it could trade between 106.50 and 107.80 for a period.”