USD/JPY still seen side-lined – UOB

USD/JPY is still predicted to keep the ongoing consolidative stance for the next few weeks, argue Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: We expected USD to trade between 148.00 and 149.20 last Friday. However, it traded in a higher range than expected (148.33/149.53). Further range trading appears likely, even though the slightly firm underlying tone suggests a higher range of 148.60/149.70. 

Next 1-3 weeks: Our latest narrative was from last Wednesday (04 Oct, spot at 149.10), wherein the recent sharp fluctuations have muddled the outlook for USD, and we expected USD to trade in a broad range of 145.90/150.50. The price actions since last Wednesday did not offer any further clues. We continue to expect USD to trade in a range, albeit likely in a narrower one of 147.00/150.50.