USD/JPY moved into a 103.75-105.20 range – UOB

USD/JPY is likely to extend the consolidative theme between 103.75 and 105.20 in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD popped to a high of 105.06 yesterday before dropping back down quickly. The choppy price actions have resulted in a mixed outlook. For today, USD is likely to trade between 104.15 and 104.75.”

Next 1-3 weeks: “Our view from last Tuesday (10 Nov, spot at 105.15) wherein there is ‘room for the current strong advance in USD to test the major resistance at 106.10’ was proven incorrect as it dropped below the ‘strong support’ level of 104.40 yesterday (low of 104.34). The recent sharp but short-lived swings have resulted in a mixed outlook. Near-term, there is slight downward bias but any weakness is viewed as part of a lower trading range of 103.75/105.20 (a sustained decline below 103.75 is unlikely).”