USD/JPY now moved into a consolidative phase – UOB

According to FX Strategists at UOB Group, USD/JPY is now seen trading between 109.30 and 110.55 in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘while the rapid advance appears to be running ahead of itself, there is room for the current USD strength to test 110.20 first before easing off’. Our view was not wrong even though the pullback from the high of 110.22 was sharper than expected (low of 109.47). Momentum indicators are turning ‘flat’ and for today, USD is likely to trade sideways, expected to be within a 109.55/110.05 range.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (19 Aug, spot at 109.90). As highlighted, the recent USD weakness has ended and USD is likely to trade within a 109.30/110.55 range for a period of time.”