USD/JPY sticks to the sideline theme – UOB

In opinion of FX Strategists at UOB Group, the pair’s outlook stays neutral, likely between 110.45/111.05 in the next weeks.

Key Quotes

24-hour view: “Expectation for a stronger USD was wrong as this pair traded mostly sideways instead. The recent upward pressure has eased USD has likely moved into a consolidation phase. In other words, sideways trading is expected for now, likely within a 110.45/111.05 range”.

Next 1-3 weeks: “There is no change to the view wherein we believe USD has moved into a neutral consolidation phase yesterday. Despite the strong rebound end of last week, it is too early to expect a bullish reversal. USD is more likely to trade sideways from here, likely within a broad 110.10/111.70 range”.