USD/JPY: Consolidation poised to remain so far – UOB

There are no changes to the consolidative mood in USD/JPY for the time being, likely between 109.30 and 110.55, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Last Friday, we highlighted that ‘bias is shifting to the downside’ but we were of the view that ‘any weakness is unlikely to challenge the major support at 109.50’. Our view was not wrong as USD subsequently dropped to 109.58 before rebounding. Downward pressure appears to have eased and USD is unlikely to weaken further. For today, USD is likely to consolidate and trade within a 109.55/110.00 range.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (03 Sep, spot at 109.85). As highlighted, USD is still in consolidating and it could continue to trade within a 109.30/110.55 range for now.”