The USD/JPY is expected to remain in the 110.60-111.65 region for the foreseeable being, according to UOB Group FX Strategists.
Observation for 24 hours: “Yesterday, we said that ‘upward pressure has dissipated, and the current movement is considered as part of a consolidation phase,’ and that we expected the USD to ‘trade between 110.85 and 111.35.’ Following that, the USD moved in a 110.78/111.18 range before closing unchanged at 110.96. (-0.07 percent ). The underlying tone has softened, and the dollar is expected to trade lower, but a decisive break of 110.60 seems improbable (the next support is at 110.30). A breakout of 111.10 on the upside would signal that the current slight negative pressure has subsided.”
Within the next 1-3 weeks: “There isn’t anything to add to yesterday’s update (05 Jul, spot at 111.10). As previously stated, the USD has likely entered a consolidation phase and will likely trade between 110.60 and 111.65 for some time.”/n
