USD/JPY is expected to navigate within the 109.60-110.80 range in the next weeks, noted FX Strategists at UOB Group.
24-hour view: “We expected USD to ‘trade between 110.10 and 110.60’ last Friday. USD subsequently traded within a lower range than expected (109.93/110.46) before closing little changed at 110.19 (-0.01%). The movement is still viewed as a consolidation and USD is likely to trade between 109.90 and 110.45 for today.”
Next 1-3 weeks: “Last Friday (18 Jun, spot at 110.25), we warned about expecting further USD strength as we indicated that USD ‘has to move and stay above 110.60 within these couple of days or the odds for USD to break above 110.95 would diminish’. USD subsequently broke the ‘strong support’ level of 110.00 (low of 109.95). The break of the ‘strong support’ indicates that the USD strength that started last week has come to an end. The current movement is viewed as the early stages of a consolidation phase and USD is expected to trade within a 109.60/110.80 range for now.”
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