USD/JPY upside momentum loses traction – UOB

UOB Group’s FX Strategists noted that USD/JPY still faces some consolidation within the 109.30/110.55 range in the next weeks.

Key Quotes

24-hour view: “Last Friday, we held the view that ‘the weakness in USD could dip below 109.50 first before stabilization can be expected’. Our expectations did not materialize as USD traded sideways and in a quiet manner between 109.68 and 109.98. Momentum indicators are mostly neutral USD could continue to trade sideways. Expected range for today, 109.70/110.10.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (10 Sep, spot at 109.93). As highlighted, the recent build-up in upward momentum has fizzled out and USD is still consolidating within a range of 109.30/110.55.”