USD/JPY choppy within a broad range – UOB

FX Strategists at UOB Group noted spot should continue to trade in a consolidative manner for the time being.

Key Quotes

24-hour view: “USD traded mostly sideways yesterday but slipped to a low of 106.04 during NY hours. Downward momentum has picked up and there is room for a deeper down-move towards 105.90 (next support is at 105.70). Resistance is at 106.45 followed by 106.70”.

Next 1-3 weeks: “We highlighted yesterday that the “prospect of a recovery above 107.00 is still intact but has diminished”. USD surprised us by surging above 107.00 and hit an overnight high of 107.29. The up-move was however short-lived and the recent upward pressure has eased with the subsequent sharp and rapid pull-back from the high. Overall, the neutral phase that started 3 weeks ago remains intact but USD is more likely to trade choppily within a broad 105.70/107.50 range from here”.