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USD/JPY is expected to extend the current sideline theme for the time being, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for USD to “extend its advance” did not materialize as it traded in a muted manner and within a relatively narrow range (between 106.24 and 106.64). The price action is likely part of an on-going consolidation phase and USD is expected to continue to trade sideways for now. Expected range for today, 106.20 and 106.65″.

Next 1-3 weeks: “There is not much to add as USD traded in a quiet manner and registered an ‘inside trading day’. Our view from Tuesday (20 Aug, spot at 106.60) still stands wherein we expect USD to “trade sideways”. Indicators are still showing mixed signals and as highlighted previously, USD could trade sideways and only a clear break out of the expected 105.50/107.30 range would indicate that USD is ready for a sustained directional move”.