USD/JPY is expected to navigate the 105.00-106.00 range in the next weeks, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our expectation for USD to ‘edge higher’ did not materialize as it traded in a muted manner between 105.28 and 105.50. The underlying tone still appears firm and we continue to see chance for USD to edge higher and while a break of 105.70 is not ruled out, a sustained advance above this level appears unlikely for now (next resistance is at 106.00). Support is at 105.30 followed by 105.15.”
Next 1-3 weeks: “Last Thursday (15 Oct, spot at 105.20), we indicated that USD ‘has to close below 104.70 before a sustained decline can be expected’. USD subsequently traded in a quiet manner and the mild downward pressure has eased. Momentum indicators are mostly neutral and USD could trade between 105.00 and 106.00 for now.”
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