USD/JPY entering consolidative mode – UOB

In light of the recent price action, FX Strategists at UOB Group noted the bullish phase in the pair has ended.

Key Quotes

“While we warned of the increased risk of an interim top yesterday, the pace and extent of the USD decline was unexpected (the 0.69% decline is the largest single-day drop in more than a month)”.

“The bullish phase that started on 20 Jun (spot at 111.65) has ended with the break of 113.40 (low has been 112.90). USD has likely just moved into a consolidation phase and is expected to trade within a broad 112.00/114.20 range for now even though the immediate bias is tilted to the downside.