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In opinion of FX Strategists at UOB Group, USD/JPY has moved to a consolidative phase, likely between 106.80 and 108.05.

Key Quotes

24-hour view: “Our expectation for AUD to ‘grind higher towards 107.85’ did not materialize as it dropped quickly after touching 107.77 (overnight low of 107.24). The underlying tone has weakened and from here, USD could drift lower. However, the strong support at 107.00 is unlikely to come under threat. Resistance is at 107.55 followed by 107.75.”

Next 1-3 weeks: “We highlighted last Friday (03 Jul, spot at 107.50) that the odds for USD to move to 108.40 have diminished. While our ‘strong support’ level at 107.00 is still intact, upward momentum has more or less dissipated. The current movement is deemed as part of a consolidation phase and USD could trade between 106.80 and 108.05 for a period.”