USD/JPY appears consolidative near term – UOB

FX Strategists at UOB Group still see the pair within a consolidative theme in the next weeks.

Key Quotes

24-hour view: “We expected USD to “edge lower to 111.00” yesterday and held the view that the next support at 110.75 is “unlikely to be threatened”. While USD subsequently dipped to a low of 110.98, the relatively sharp bounce from the low was not exactly expected. The underlying tone has improved with the recovery but it is too early to expect a sustained up-move. USD is more likely to trade sideways to slightly higher for today, expected to be between 111.15 and 111.65”.

Next 1-3 weeks: “USD dipped to a low of 110.98 but recovered quickly to end the day little changed at 111.37 (-0.02%). We continue to view the current movement as part of a consolidation phase and expect USD to trade sideways, likely within a 110.60/112.20 range”.