USD/JPY clings to the consolidative note – UOB

USD/JPY remains side-lined and is expected to trade between 105.95 and 106.35 in the next weeks.

Key Quotes

24-hour view: “We noted yesterday that ‘upward momentum is beginning to improve but appears tentative for now’ and we were of the view that USD could edge upward within ‘a higher trading range of 106.00/106.50’. However, USD did not do much as it traded in a muted manner and within a narrow range of 105.97/106.29. The price action offers no fresh clues and USD could continue to trade sideways for now. Expected range for today, 105.95/106.35.”

Next 1-3 weeks: “There is not much to add to our latest narrative from Monday (07 Sep, spot at 106.25). As highlighted, the current movement in USD is likely part of a consolidation phase and USD is expected to trade between 105.50 and 106.90 for a period of time. The price actions over the past few days offer no fresh clues and we continue to hold the same view for now.”