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FX Strategists at UOB Group do not rule out further gains in USD/JPY in the next weeks, although always within the broader consolidative range.

Key Quotes

24-hour view: “We highlighted yesterday USD ‘could weaken further to 106.65 before a recovery can be expected’. However, USD rebounded from much higher level than anticipated as it staged a robust advance after touching 106.91. The recovery has gained considerable momentum and from here, barring a move below 107.20 (minor support at 107.45), USD could strengthen to 108.20. For today, the next resistance at 108.70 is unlikely to come into the picture.”

Next 1-3 weeks: “We noted yesterday that USD ‘is still under pressure but downward momentum has not improved by all that much and USD has to close below 106.65 before further weakness can be expected’. USD subsequently rebounded strongly and downward momentum has more or less dissipated. The recovery could extend higher but at this stage, any advance is viewed as part of a 107.00/109.00 range that we first indicated on Monday (13 Apr).”