USD/JPY clings to the consolidative theme – UOB

UOB Group’s FX Strategists still see USD/JPY navigating within the 109.20-110.60 range for the next weeks.

Key Quotes

24-hour view: “We highlighted last Friday that USD ‘could decline further but a break of the major support at 109.20 is unlikely’. Our view was not wrong as USD dipped to 109.35 before recovering. The price actions are viewed as part of a consolidation and USD is likely to trade within a 109.45/109.85 range for today.”

Next 1-3 weeks: “Our update from last Wednesday (28 Jul, spot at 109.85) still stands. As highlighted, USD could trade within a 109.20/110.60 range for now. While shorter-term downward momentum has improved somewhat, USD has to close below 109.05 before a sustained decline can be expected. The prospect for USD to close below 109.05 is not high but it would remain intact as long as USD does not move above 110.00 within these few days.”