USD/JPY sticks to the consolidation theme – UOB

USD/JPY is forecast to trade between 114.55 and 115.90 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations for USD to ‘dip below 115.00’ yesterday did not materialize as it traded between 115.11 and 115.67 before closing largely unchanged at 115.28 (+0.07%). The underlying tone still appears to be on the soft side and we continue to see chance for USD to dip below 115.00. That said, a sustained decline below this level is unlikely. Resistance is at 115.45 followed by 115.65.”

Next 1-3 weeks: “There is no change in our view from yesterday (11 Jan, spot at 115.20). As highlighted, the recent positive phase in USD has come to an end. From here, USD is likely to trade between 114.55 and 115.90.”