USD/JPY now faces further rangebound – UOB

FX Strategists at UOB Group remain neutral on spot and noted the pair has moved into a consolidative theme.

Key Quotes

24-hour view: “USD traded between 112.59 and 112.99 yesterday, narrower than our expected 112.60/113.20 consolidation range. The consolidation phase appears incomplete even though the weakened undertone suggests a lower trading range of 112.40/113.10”.

Next 1-3 weeks: “After touching a high of 113.38 on Wed (31 Oct), USD slipped and edged below the strong 112.60 support (overnight low of 112.59). As highlighted yesterday, a break of this level is enough to indicate that upward pressure has eased. After the recent whippy price action, the near-term outlook is clouded and from here, it seems that USD has likely moved back into a range trading phase. Expected range for the next couple of weeks; 112.00/113.50”.