USD/JPY extends the consolidation near term – UOB

In opinion of the research team at UOB Group, USD/JPY remains within a sideline theme between 101.20 and 103.30 in the next weeks.

Key Quotes

“The anticipated USD strength exceeded our expectation by easily moving above the 103.05 resistance (high of 103.34). However, the subsequent sharp and rapid drop from the high was unexpected. Upward momentum has eased and while the current pull-back could extend lower, a move below the major 102.00 support seems unlikely”.

“As highlighted yesterday, despite the positive undertone, USD has to close above the 103.30 resistance before further up-move can be expected. The build-up in momentum fizzled out quickly with the sharp drop from the high of 103.34. The outlook from here is still viewed as neutral but USD has likely moved back into a broad sideway trading range of 101.20/103.30.