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USD/JPY is still expected to navigate within the 103.40-104.40 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD briefly rose to 104.08 yesterday before easing off to trade mostly sideways. Momentum indicators are mostly neutral and USD could continue to trade sideways, likely between 103.70 and 104.15.”

Next 1-3 weeks: “One week ago (13 Jan, spot at 103.75), we indicated that the outlook is mixed and USD ‘could trade between 103.00 and 104.40’. Our view was not wrong as USD traded in a relatively quiet manner for the past week. There is no change in our view even though the low volatility suggests a 103.40/104.40 range is likely enough to contain the price actions from here. Looking ahead, the risk of a break of 104.40 first appears to be greater but at this stage, it is premature to expect the start of a sustained advance in USD.”