USD/JPY sidelined trade seen near term – UOB

The pair’s stance remains neutral near term and it is expected to continue with the rangebound theme in the next weeks, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded sideways as expected albeit at a slightly narrower range than anticipated. The undertone seems to have improved and the immediate bias has shifted to the upside. However, any extension higher is expected to face solid resistance near last week’s top at 107.75 (there is another strong resistance at 107.90). Support is at 107.15 but the stronger level is at 106.95”.

Next 1-3 weeks: “The 35 pips range registered yesterday is the smallest one-day range so far this year (24-hour range has been 106.85 between 107.20). The muted price action offers no fresh clues and we continue to hold a neutral stance and expect USD to trade sideways. The key levels are at 106.20 on the downside and 107.90 on the upside but for the next couple of days, 106.60/107.65 is likely enough to contain the movement in USD”.