USD/JPY keeps the rangebound theme unchanged – UOB

USD/JPY is forecast to keep the 110.60-111.65 range for the time being, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘upward pressure has dissipated and the current movement is viewed as part of a consolidation phase’ and we expected USD to ‘trade between 110.85 and 111.35’. USD subsequently traded within a 110.78/111.18 range before closing little changed at 110.96 (-0.07%). The underlying tone has weakened and USD is likely to trade with a downward bias but a clear break of 110.60 is unlikely (the next support is at 110.30). On the upside, a breach of 111.10 would indicate that the current mild downward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (05 Jul, spot at 111.10). As highlighted, USD has likely moved into a consolidation phase and is likely to trade between 110.60 and 111.65 for a period of time.”