USD/JPY faces further consolidation – UOB

According to UOB Group’s FX Strategists, the prospects for USD/JPY keep pointing to extra rangebound in the next weeks, likely between 108.50 and 109.95.

Key Quotes

24-hour view: “We highlighted yesterday that ‘momentum indicators are mostly neutral and further sideway-trading would not be surprising’, and we expected USD to ‘trade within a 109.05/109.60 range’. Our view was not wrong even though USD traded within a narrower range than expected (109.06/109.49). The price actions offer no fresh clues and we continue to expect USD to trade sideways, likely between 109.00 and 109.55.”

Next weeks: “There is no change in our view from yesterday (17 May, spot at 109.35). As highlighted, USD is likely to consolidate and trade between 108.50 and 109.95.”