USD/JPY is expected to keep navigating the 105.50-106.90 range for the time being.
Key Quotes
24-hour view: “We expected USD to ‘consolidate between 106.05 and 106.50’ yesterday. However, it dropped to a low of 105.85 before ending the day on a soft note at 106.01 (-0.23%). The slight increase in downward momentum could lead to further weakness but for today, the major support t 105.50 is unlikely to come into the picture (minor support is at 105.70). Resistance is at 106.15 followed by 106.35.”
Next 1-3 weeks: “We noted last Thursday (03 Sep, spot at 106.20) that ‘the odds for USD to test the 104.70 have diminished’. We added, ‘a breach of 106.55 would indicate that USD has moved back into a consolidation phase’. While the 106.55 level is still intact, downward momentum has more or less dissipated. In other words, the current price action is likely part of a consolidation phase and USD is expected to trade between 105.50 and 106.90 for a period of time.”
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