USD/JPY: Extra rangebound likely near term – UOB

USD/JPY is predicted to keep the 109.30-110.55 range well in place for the time being, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected USD to ‘trade sideways within a 109.55/110.05 range’. USD subsequently rose to 110.14 before dropping back down to end the day at 109.68 (low has been 109.64). The underlying tone has weakened somewhat and USD could edge lower to 109.55. The next support at 109.30 is not expected come under threat. Resistance is at 109.95 followed by 110.10.”

Next 1-3 weeks: “There is not much to add to our update from last Thursday (19 Aug, spot at 109.90). As highlighted, USD could trade within a 109.30/110.55 range for a period of time.”