USD/JPY rangebound between 112.30 and 114.50 – UOB

USD/JPY should remain within the consolidative range in the next week, suggested FX Strategists at UOB Group.

Key Quotes

“The 113.55 target indicated yesterday was exceeded as USD hit a high of 113.77. The short-term strength is showing signs of tiring and the upside risk appears to be limited for today. From here, allow for an uptick to 113.80/85 but 114.30 is expected to cap for a pull-back to 113.10 (next support at 112.80 is strong level and is unlikely to be threatened)”.

“After closing lower for 3 straight days, USD ended higher yesterday and registered a modest gain. From here, the price action is still viewed as part of a 112.30/114.50 consolidation range and based on the current indicators, this range is expected to be intact for a while yet”.