USD/JPY still seen rangebound near-term – UOB

USD/JPY is likely to extend the 103.70-105.30 range for the next weeks, in according to FX Strategist at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘there is room for USD to test 104.80 first before the current upward pressure should ease’. However, USD only touched 104.75 before easing off slightly. Momentum indicators are mostly neutral now and for today, USD is likely to trade sideways between 104.20 and 104.80.”

Next 1-3 weeks: “One week ago (17 Nov, spot at 104.45), we held the view that there is a ‘slight downward bias in USD but any weakness is viewed as part of a lower trading range of 103.75/105.20’. After USD dropped to 103.63, we indicated last Thursday (19 Nov) that ‘while the underlying tone still appears soft, the prospect for USD to move to 103.18 from here is not high’. That said, the sudden surge in USD that sent it soaring to an overnight high of 104.63 came a surprise. The mild downward pressure has dissipated and the current movement is viewed as the early stages of a consolidation phase and USD could trade between 103.70 and 105.30 for now.”