USD/JPY stays consolidative near term – UOB

FX Strategists at UOB Group keep the neutral stance on spot, adding that it is expected to extend the rangebound pattern for the time being.

Key Quotes

24-hour view: “While expectation for USD “to probe the next support at 110.75” was correct, the subsequent sharp rebound from a low of 110.66 was unexpected. USD has likely made a short-term low at 110.66 and this level is not expected to be challenged for today. That said, the recovery lacks momentum and we view the current USD strength as part of a consolidation phase and not the start of sustained up move. In other words, we expect USD to trade sideways from here, likely within a 110.85/111.50 range”.

Next 1-3 weeks: “We continue to view the current movement as part of a neutral consolidation phase and expect USD to trade sideways for now, likely between 110.35 and 111.80”.