Consolidation around USD/JPY remains unchanged – UOB

FX Strategists at UOB Group noted USD/JYP is expected to keep intact its rangebound theme in the near term.

Key Quotes

24-hour view: “The rapid and sharp decline in USD last Friday came as a surprise. Downward momentum has improved and from here, barring a move above 108.25 (minor resistance is at 108.10), USD could extend its decline and test the strong support at 107.50”.

Next 1-3 weeks: “Despite the relative sharp decline last Friday (107.89, -0.54%), we continue to hold the same view as from last Thursday (11 Jul, 108.30) wherein USD is expected to trade sideways within a relatively broad 107.50/108.95 range. A test of the bottom of the range would not be surprising but a sustained decline below the next support at 107.20 is unlikely”.