USD/JPY is expected to remain sidelined for the time being, noted FX Strategists at UOB Group.
24-hour view: “The choppy and rapid swings in USD have resulted in a mixed outlook. US/China headlines could result in further volatile price action as USD could continue to swing between 106.85 and 107.80”.
Next 1-3 weeks: “We highlighted the “diminished odds for further USD weakness” on Tuesday (08 Oct, spot at 107.25) and the break of the 107.50 ‘strong resistance’ level yesterday (high of 107.62) indicates that USD has moved back into a sideway-trading phase (we previously expected USD to trade lower towards 106.35). From here, USD is likely to trade between the two major levels of 106.50 and 108.50 for a period”.