USD/JPY still seen rangebound in the near-term – UOB

USD/JPY is expected to trade within a consolidative fashion in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded between 109.67 and 109.96 yesterday, narrower than our expected sideway-trading range of 109.50/109.90. Momentum indicators are still mostly ‘neutral’ and USD could continue to trade sideways for now. Expected range for today, 109.60/110.00.”

Next 1-3 months: “For the next couple of months, the soft underlying tone could lead to USD/JPY drifting lower but at this stage, any weakness is viewed as part of a broad 106.50/110.65 range. In other words, we expect USD/JPY to consolidate and trade sideways between the two major levels of 106.50 and 110.65.”