USD/JPY is currently likely to trade between 110.60 and 111.65 in the coming weeks, according to UOB Group FX Strategists.
Observation for 24 hours: “Last Friday, we expected the dollar to strengthen, but we believed that 111.95 was just out of reach due to “seriously overbought conditions.” Following that, the USD surged to 111.65 before plummeting to 110.94 during New York trading hours. The upward pressure has subsided, and the present trend is being considered part of a consolidation period. USD is expected to trade between 110.85 and 111.35 today.”
Within the next 1-3 weeks: “The USD’s upward phase, which began last Thursday (01 July, spot at 111.05), came to an abrupt end last Friday, when the currency dropped and surpassed our’strong support’ level of 111.00. (low of 110.94). The breach of firm support, along with a sudden loss of momentum, suggests that the US dollar has entered a consolidation period. USD could move for a while between 110.60 and 111.65 from here.”/n
