USD/JPY returned to a consolidative phase – UOB

Spot remains neutral and has moved to a rangebound phase, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded at a higher and wider range than expected last Friday. The price action is viewed as part of broader consolidation range even though the immediate bias is for USD to test the top of the expected 112.80/113.50 consolidation range”.

Next 1-3 weeks: “There is not much to add to last Friday’s (02 Nov, spot at 112.80) update. As highlighted, after the recent whippy price action, the near-term outlook is clouded. For now, we view the current price action as part of a 112.00/113.50 range trading phase. Looking ahead, the upside appears to be vulnerable but only a NY closing above 113.50 would suggest USD is ready to challenge 114.00”.