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USD/JPY is still expected to extend the 103.70-104.80 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways between 103.85 and 104.30’ yesterday. While our expectation was not wrong, USD traded within a narrower range than expected (103.94/104.20). The price action offers no fresh clues and further sideway-trading would not be surprising. Expected range for today, 103.90/104.30.”

Next 1-3 weeks: “We have held the same view since last Wednesday (02 Dec, spot at 104.30) wherein the outlook for USD is mixed and only a clear break below 103.70 or above 104.80 would indicate the start of a more directional price action. Since then, USD traded mostly sideways and there is no change in our view. Looking ahead, the support at 103.70 appears to be more vulnerable even though the prospect for USD to move towards last month’s low at 103.18 is rather slim for now.”