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FX Strategists at UOB Group noted a move to 108.40 in USD/JPY lost some momentum in past sessions.

Key Quotes

24-hour view: USD traded between 107.32 and 107.72 yesterday, close to our expected sideway-trading range of 107.30/107.70. The price action offers no fresh clues and USD could continue to trade sideways, expected to be within a 107.25/107.75 range.”

Next 1-3 weeks: “We highlighted on Tuesday (30 Jun, spot at 107.70) that ‘upward momentum is beginning to improve and USD could strengthen towards 108.40’. USD subsequently rose to a high of 108.14 before dropping back quickly and over the past couple of days, traded mostly sideways. Upward momentum has eased but only a break of 107.00 (no change in ‘strong support’ level) would indicate that the upside risk has dissipated. In other words, there is still chance for USD to move to 108.40 even though the odds for such a scenario have diminished.”