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USD/JPY seems to have moved into the 108.50-109.55 consolidative range for the time being, commented UOB Group’s FX Strategists.

Key Quotes

24-hour view: “USD traded between 108.68 and 108.99 yesterday, narrower than our expected sideway-trading range of 108.70/109.15. The price actions offer no fresh clues and USD could continue to trade sideways. That said, the underlying tone has softened somewhat and USD is likely to trade within a lower range of 108.60/109.05.”

Next 1-3 weeks: “We continue to hold the same view as from last Thursday (20 May, spot at 109.15). As highlighted, USD is expected to trade within a 108.50/109.55 range for now. Looking further ahead, the risk of USD breaking the bottom of the range at 108.50 first appears to be higher but shorter-term price actions do not suggest a breach of this level is imminent.”