Further choppiness lies ahead for USD/JPY – UOB

FX Strategists at UOB Group noted the pair remains neutral while it is expected to extend the choppy trade in the next weeks.

Key Quotes

24-hour view: “USD rebounded and the major support highlighted at 110.05 last Friday was unchallenged (low of 110.37). Downward pressure has clearly eased and we view the current movement as part of a consolidation phase. In other words, USD is expected to trade sideways for today, likely within a 110.65/111.35 range”.

Next 1-3 weeks: “USD dipped to a low of 110.37 last Friday before rebounding sharply to end the day on a firm note. The volatile price action continues to cloud the immediate outlook and we are maintaining our neutral USD stance for now. Further choppy price actions would not be surprising and only a break out of last month’s 109.76/112.14 range would suggest that USD is ready for a directional move”.