USD/JPY points to 103.80-107.00 range – UOB

USD/JPY is seen extending its consolidative theme between 103.80 and 107.00 in the next weeks, according to the research team at UOB Group.

Key Quotes

“The sudden pick-up in volatility was clearly unexpected. USD surged to a high of 106.53 before dropping rapidly to current level. The down-move appears to have scope to extend lower to 104.40 but Tuesday’s low of 103.95/00 is unlikely to be threatened”.

“While the short-term downward pressure has eased with the sharp spike to a high of 106.53 yesterday, the neutral phase that started late last week is still intact. Instead of extending lower to 103.50 as expected previously, the current high volatility suggests that USD is more likely to trade sideways within a broad 103.80/107.00 range from here”.