USD/JPY faces some consolidation near-term – UOB

USD/JPY is now likely to trade within a 104.40-105.60 range in the short-term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded between 104.71 and 105.18 last Friday before settling at 104.93 (+0.20%). Upward momentum has improved a tad and USD could edge above 105.20. The next resistance at 105.45 is not expected to come into the picture. Support is at 104.80 followed by 104.60.”

Next 1-3 weeks: “Last Wednesday (10 Feb, spot at 104.65), we held the view that ‘risk has shifted to the downside but major support at 104.20 may not come into the picture so soon’. USD subsequently dropped to 104.40 but has since rebounded. Downward pressure has eased and further USD weakness is unlikely. USD is more likely to trade sideways, expected to be between 104.40 and 105.60.”