In view of FX Strategists at UOB Group, USD/JPY should keep the consolidation unchanged in the short-term horizon, likely between 107.78 and 108.10.
Key Quotes
24-hour view: “Our expectation for USD to “extend its decline and test the strong support at 107.50″ did not materialize as it traded in relatively muted manner and within a tight range of 107.78/108.10. Momentum indicators have turned mostly ‘neutral’ with the quiet price action and USD is likely to continue to trade sideways. Expected range for today, 107.70/108.10″.
Next 1-3 weeks: “Despite the relative sharp decline last Friday (107.89, -0.54%), we continue to hold the same view as from last Thursday (11 Jul, 108.30) wherein USD is expected to trade sideways within a relatively broad 107.50/108.95 range. A test of the bottom of the range would not be surprising but a sustained decline below the next support at 107.20 is unlikely”.
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