USD/JPY expected to extend the consolidative range – UOB

FX Strategists at UOB Group keep the neutral view on the pair and see further rangebound ahead.

Key Quotes

24-hour view: “Expectation for “a dip below 106.60” was wrong as USD rebounded after touching a low of 106.60. The rebound lacks momentum and the movement is viewed as part of a broader consolidation phase. In other words, we expect USD to trade sideways for today, likely between 106.60 and 107.40”.

Next 1-3 weeks: “The outlook for USD remains mixed and we continue to hold a neutral stance. We expect further erratic trading from here, likely within a broad 106.20/107.90 range”.