USD/JPY seen within the 106.70/107.70 range so far – UOB

FX Strategists at UOB Group keep favouring the consolidation in USD/JPY in the next weeks, likely between 106.70 and 107.70.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways’ yesterday but instead, it soared to a high of 107.39 before ending the day on a firm note at 107.26 (+0.32%). Upward momentum has picked up, albeit not by much. From here, there is room for USD to grind higher towards 107.55 (next resistance is at 107.70). Support is at 107.05 followed by 106.85.”

Next 1-3 weeks: “USD continues to trade in an ‘undecided’ manner and there is no change to our view from Wednesday (15 Jul, spot at 107.25). As highlighted, the outlook is mixed and USD could trade between 106.70 and 107.70 for a while. Overall, the recent lackluster price actions suggest USD is not likely to embark on a sustained directional move anytime soon.”