In opinion of FX Strategists at UOB Group, USD/JPY is likely to navigate within the 109.60-110.80 range for the time being.
Key Quotes
24-hour view: “Our expectation for USD to ‘trade between 109.90 and 110.45’ was incorrect as it dropped to 109.70 before rebounding strongly (high has been 110.34). The rebound has scope to extend but any advance is likely limited to a test of 110.55. The major resistance at 110.80 is not expected to come into the picture. Support is at 110.00 followed by 109.80.”
Next 1-3 weeks: “There is no change in our view from yesterday (21 Jun, spot at 110.20). As highlighted, the current movement is viewed as part of a consolidation phase and USD is expected to trade within a 109.60/110.80 range for now.”
