Further rangebound expected in USD/JPY – UOB

In opinion of FX Strategists at UOB Group, the pair is seen within a consolidation pattern for the time being.

Key Quotes

24-hour view: “USD dipped below the strong 106.00 support before reversing quickly from a low of 105.97. The sharp and rapid swing higher has improved the undertone and a move above last week’s top near 107.00 could lead to further gains towards 107.30. The latter level is a strong level and is expected to offer stiff resistance. Support is at 106.50 followed by 106.20. The 105.97 is unlikely to come into the picture”.

Next 1-3 weeks: “USD rebounded strongly and regained all and more of the loss made on Monday. As highlighted yesterday (03 Apr, 105.75), we still view last week’s 104.55 low as a short-term bottom and only an unlikely break of this level would indicate that USD has entered a bearish phase. For now, we expect USD to continue to trade sideways, albeit likely at a higher 105.50/107.30 range (instead of 104.80/106.80 expected previously)”.