USD/JPY faces consolidation between 106.00-107.50 – UOB

FX Strategists at UOB Group seen USD/JPY navigating within the 106.00-107.50 range in the short-term horizon.

Key Quotes

24-hour view: “USD eased off from a high of 107.40 last Friday and subsequently traded mostly sideways. Momentum indicators are neutral and for today, USD is likely to consolidate and trade between 106.40 and 107.10.”

Next 1-3 weeks: “Our expectation for USD ‘to weaken to 106.00’ from last Thursday (29 Apr, spot at 106.65) did not materialize as it rebounded strongly and took out the ‘strong resistance’ level at 107.35. Downward pressure has eased and USD has likely moved into a consolidation phase. In other words, USD is likely to trade sideways from here, expected to be within 106.00/107.50 range. Looking further ahead, USD has to close below 106.00 before a sustained weakness can be expected.”