USD/JPY further choppy trade ahead – UOB

USD/JPY is expected to trade in a broad consolidative range between 108.80 and 110.60 in the next weeks, according to analysts at UOB Group.

Key Quotes

“While the strong 110.45 resistance capped the rebound in USD as expected, the subsequent down-move from the overnight high of 110.20 lacks momentum and the odds for a sustained down-move are not high. From here, as long as 110.20 is not taken out, USD is expected to drift lower to test 109.25/30 support”.

“There is no change to the current neutral view on USD. This pair is expected to trade choppily within a broad 108.80/110.60 range for the next one week or so. Looking further ahead, the current consolidation is likely a prelude for a stronger USD but 110.60 has to break before a sustained up-move can be expected”.