USD/JPY sticks to the consolidative theme – UOB

FX Strategists at UOB Group keep the neutral stance on the pair while it should stay within the current consolidative range in the near term.

Key Quotes

24-hour view: “Instead of ‘testing’ the strong 107.45/50 resistance (as expected yesterday), USD surged and hit an overnight high of 107.67. Despite the pullback from the high, the undertone is still positive and a break 107.67 could lead further rapid rise to 107.95 (next resistance is at 108.30). Support is at 107.05 followed by 106.80”.

Next 1-3 weeks: “USD dipped to a low of 106.36 but rebounded strongly to close largely unchanged for the day. The price action reinforces our current neutral view for USD. The outlook remains unclear and USD is expected to continue to trade listlessly, likely within a relatively broad 105.80/108.30 range”.