USD/JPY still looks consolidative for the time being – UOB

According to UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, USD/JPY remains stuck within the 144.00-152.00 range in the near term.

Key Quotes

24-hour view: “Yesterday, we held the view that USD ‘could continue to trade in a choppy manner, likely between 147.40 and 150.10’. USD subsequently traded within a narrower range than expected (147.51/149.09). The underlying tone has softened and USD is likely to edge lower for today. That said, any decline is likely limited to a test of 147.00. Resistance is at 148.50, followed by 149.00.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (25 Oct, spot at 148.80). As highlighted, the recent volatile price actions have resulted in a mixed outlook. Further volatility is not ruled out and USD could trade within a wide range of 144.00/152.00 for the time being.”