USD/JPY faces extra rangebound near-term – UOB

USD/JPY is likely to keep the consolidative mood in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘drift lower to 107.20’ did not materialize as it popped to a high of 107.94 before dropping back quickly. Indicators are showing mixed signals and for today, USD could trade in a listless manner between 107.50 and 108.00.”

Next 1-3 weeks: “USD continues to trade in a quiet manner and the build-up in momentum from last week has dissipated. This was not exactly surprising as we indicated last Friday (22 May, spot at 107.70) that the prospect for further USD strength has diminished. The current movement is viewed as part of a consolidation phase and only a daily closing out of the expected 107.00/108.00 range would suggest the start of a more sustained movement in USD. In other words, USD is likely to trade sideways for now.”