USD/JPY remains side-lined within the 114.40-115.60 range in the near term, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted yesterday that the outlook is mixed and we expected USD to ‘trade between 114.85 and 115.65’. However, USD dropped to 114.68 before rebounding. Despite the decline, downward momentum has not improved by much and further USD weakness is unlikely. For today, USD is more likely to consolidate and trade between 114.70 and 115.30.”
Next 1-3 weeks: “Last Friday (25 Feb, spot at 115.45), we highlighted that the outlook appears to be neutral and USD is expected to trade within a range of 114.80/115.90. While USD dipped below the bottom of our expected range during NY session (low of 114.68), downward momentum has barely improved. In other words, the outlook still appears to be neutral even though USD is likely to trade within a lower range of 114.40/115.60. Looking ahead, USD has to break clearly below 114.40 or above 115.60 before a more directional price actions can be expected.”