USD/JPY within a 113.50/116.00 range near term – UOB

Spot should keep the consolidative theme between 113.50 and 116.00 in the next 1-3 weeks, according to FX Strategists at UOB Group.

Key Quotes

“We indicated yesterday that while a move above last Friday’s 115.45 is not ruled out, a sustained move above this level is not expected. USD hit a high of 115.61 but dropped quickly from the top to hit a low of 114.65. While the positive undertone has eased off somewhat, it is too early to expect a sustained pull-back”.  

“We shifted to a neutral stance yesterday and held the view that the rebound in USD has room to to extend towards 115.45/50. USD hit a high of 115.61 yesterday but eased off quickly. The failure to move higher in a sustained manner is not surprising and from here, we continue to hold a neutral stance and expect USD to trade in a broad 113.50/116.00 range (even though the immediate bias is tilted to the upside)”.