USD/JPY is still predicted to navigate between 105.00 and 106.00 in the short-term horizon, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “USD rose to a high of 105.74 yesterday before easing off to close little changed at 105.49 (+0.07%). The price actions were in line with our expectation wherein ‘a break of 105.70 is not ruled out but a sustained advance above this level appears unlikely’. The mild upward pressure has eased and the current movement is viewed as part of a consolidation phase, In other words, USD is likely to trade sideways for today, expected to be between 105.25 and 105.65.”
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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