The USD/JPY is expected to stay around the 110.05-111.10 range for the next few weeks, according to UOB Group FX Strategists.
Observation for 24 hours: “We said yesterday that the dollar ‘is likely to drift lower, but a sustained drop below 110.40 is improbable.’ As the USD fell to a low of 110.42, we were correct. The downward pressure on the dollar has abated, and it is unlikely to fall much more. The USD is expected to consolidate today, trading between 110.40 and 110.75.”
Within the next 1-3 weeks: “There isn’t much to add to yesterday’s update (29 Jun, spot at 110.65). USD may consolidate and trade between 110.05 and 111.10 for a length of time, as previously said. Looking ahead, the likelihood of USD breaking over 111.10 appears to be stronger at first, but the current consolidation could remain for a little longer.”
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