USD/JPY expected to remain consolidative – UOB

In view of FX Strategists at UOB Group, the pair is expected to remain neutral for the time being and is seen within the consolidative theme in the near term.

Key Quotes

24-hour view: “USD registered a range of 106.60/107.20 yesterday, relatively close to our expected 106.60/107.25 consolidation range. The undertone has weakened somewhat and there is room for a dip below the 106.60 low but the next support at 106.20 is unlikely to come into the picture. Resistance is at 107.00 followed by 107.20. The latter level is acting as a rather strong resistance now”.

Next 1-3 weeks: “The outlook for USD remains mixed and we continue to hold a neutral stance. We expect further erratic trading from here, likely within a broad 106.20/107.90 range”.