USD/JPY moved into a consolidation phase – UOB

The pair remains neutral and has moved into a broad consolidative range, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD reversed an initial sharp decline and rebounded sharply after touching a low of 109.53. While the recovery from the low lacks momentum, there is scope for extension to 110.40. For now, a break above the next resistance at 110.65 seems highly unlikely. Support is at 109.85 followed by the low near 109.55”.

Next 1-3 weeks: “In a last update on 14 Jun (spot at 110.25), we held the view that USD has room to move higher and ‘test’ the 111.00 resistance. USD subsequently touched a high of 110.90 but has since eased off. From here, there is no change to the neutral outlook and USD has likely moved into a broad consolidation phase and is expected to trade sideways to lower, likely between 109.10 and 110.65”.