USD/JPY: Extra rangebound seems the name of the game – UOB

USD/JPY is still expected to keep trading between 109.30 and 110.55 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘could advance to 110.25 but the major resistance at 110.55 is not expected to come into the picture’. While USD advanced as expected, if eased off after touching 110.22. The underlying tone has weakened somewhat and USD could drift lower to 109.80 today. The next support at 109.60 is unlikely to come under threat. Resistance is at 110.25.”

Next 1-3 weeks: “It’s been more than a week but our view from last Thursday (19 Aug, spot at 109.90) still stands. As highlighted, USD could trade within a 109.30/110.55 range for a period of time.”