UOB Group’s FX Strategists keep the mixed outlook unchanged for USD/JPY in the short-term horizon.
24-hour view: “USD rebounded to a high of 104.24 last Friday before closing higher by +0.30% (104.14). The movement is viewed as an on-going consolidation phase. For today, USD is expected to trade sideways, likely between 103.85 and 104.30.”
Next 1-3 weeks: “Our latest narrative was from 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’. USD subsequently dropped briefly to a low of 103.65 before rebounding. The outlook remains mixed and we continue to hold the view that only a clear break below 103.70 or above 104.80 would indicate the start of a more direction price action.”