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”.
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