USD/JPY seen within 106.20/107.90 – UOB

FX Strategists at UOB Group remain neutral on the pair, expecting further rangebound between 106.20/107.90 in the near term.

Key Quotes

24-hour view: “USD registered a range of 106.62/107.24 yesterday, narrower than our expected 106.60/107.40 consolidation range. The daily close in NY was on the weak side and this could lead to a dip below the strong 106.60 support but any weakness is unlikely to be sustained (the next support at 106.20 is not expected to come into the picture). On the upside, stabilization is only upon a move back above 107.25 (minor resistance is at 107.05)”.

Next 1-3 weeks: “The outlook for USD remains mixed and we continue to hold a neutral stance. We expect further erratic trading from here, likely within a broad 106.20/107.90 range”.