USD/JPY expected to trade between 110.05 and 111.10 – UOB

USD/JPY is forecast to keep the 110.05-111.10 range for the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that USD ‘is likely to edge lower but a sustained decline below 110.40 is unlikely’. Our view was not wrong as USD drifted to a low of 110.42. Downward pressure has eased and USD is unlikely to weaken much further. For today, USD is likely to consolidate and trade between 110.40 and 110.75.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (29 Jun, spot at 110.65). As highlighted, USD could consolidate and trade between 110.05 and 111.10 for a period of time. Looking ahead, the chance for USD to break above 111.10 first appears to be higher but the current consolidation could last for a while more.”