Further rangebound seen in USD/JPY – UOB

USD/JPY is forecasted to stick to the 105.00/106.00 range for the time being, noted FX Strategists at UOB Group.

Key Quotes

“USD traded between 105.69 and 106.19 yesterday before settling little changed at 105.95 (+0.04%). The underlying tone has firmed somewhat and this could lead to USD edging higher towards 106.40. For today, a sustained rise above this level is not expected (next resistance is at 106.60). Support is at 105.85 followed by 105.65.”

Next 1-3 weeks: “There is not much to add to our update from last Thursday (06 Aug, spot at 105.55). As highlighted, we continue to expect USD to consolidate, likely between 105.00 and 106.60. That said, upward momentum is showing sign of improving but for now, the prospect for a clear break of 106.60 is not high.”