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FX Strategists at UOB Group noted that upside momentum in USD/JPY could pick some pace in the near term.

Key Quotes

24-hour view: “As we were looking for “resistance at 107.10 may come into focus” on Wed, the sharp pullback overnight was a surprise. The move saw USD give back slightly over half of its 1.4% jump the day earlier. Today, price action is likely to stay volatile but overall, we expect a wide consolidative range between 105.10 and 106.80″.

Next 1-3 weeks: “Overnight, USD printed a low of 105.05 before rebounding sharply towards 107.00. The abrupt and sharp move has effectively eased all the downside pressures and upside momentum is gradually building. That said, stiff resistance is still expected at 107.00, having held back buyers for a second time on 13-Aug (last was 6-Aug). The next level above that is 107.50 and only further gains to 108.00 would warrant a ‘positive phase’. On the downside, supports are expected at 105.10 and 104.60″.