USD/JPY remains locked within the 108.80-110.00 range – UOB

Further rangebound in USD/JPY stays well on the cards in the short-term horizon, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘underlying tone has firmed but any advance in USD is likely limited to a test of 109.80’. We added, ‘the major resistance at 110.00 is not expected to come into the picture’. USD subsequently rose to 109.88 before easing off. Upward pressure has more or less dissipated and USD is unlikely to strengthen further. For today, USD is more likely to consolidate and trade between 109.40 and 109.85.”

Next 1-3 weeks: “There is not much to add to our update from Tuesday (01 Jun, spot at 109.45). As highlighted, the recent USD strength has ended sooner than expected and USD is likely to consolidate and trade between 108.80 and 110.00 for now.”