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In view of FX Strategists at UOB Group, USD/JPY could revisit lower levels before entering into a consolidative mode.

Key Quotes

24-hour view: “USD hardly budged as it traded in a tight 15 pips for the whole of yesterday (between 107.69 and 107.84). The muted price action offers no fresh clues and USD could continue to trade sideways for now, likely between 107.60 and 108.00″.

Next 1-3 weeks: “The tight range of 15 pips and the largely unchanged close of 107.79 (-0.02%) offer no fresh clue. For now, we are holding on to our view from Wed (03 Jul, spot at 107.80) wherein USD is expected to trade sideways. However, the soft underlying tone suggests USD could drift lower towards the bottom of the expected 107.20/108.30 range first (narrowed from 107.00/108.30). At this stage, the prospect for a sustained decline below 107.20 is not high”.