USD/JPY: Further range bound likely in the short term – UOB

According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/JPY is now seen navigating within the 134.75-137.00 range in the next weeks.

Key Quotes

24-hour view: “Our expectations for USD to edge higher did not materialize as it traded between 135.51 and 136.36. The underlying tone has weakened somewhat and USD is likely to drift lower from here. However, any decline is likely limited to a test of 135.10. The major support at 134.75 is unlikely to come under threat. Resistance is at 135.90 followed by 136.20.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (05 Jul, spot at 135.95). As highlighted, the current movement appears to be part of a broad consolidation phase and USD is likely to trade between 134.75 and 137.00 for now.”