USD/JPY rangebound between 113.00/114.50 – UOB
FX Strategists at UOB Group sticks to the neutral stance in the pair in the near term, likely to gravitate between 113.00 and the mid-114.00s.
24-hour view: “The major 114.50 resistance remains unchallenged as USD retreated after failing to move clearly above 114.20 (high of 114.21). Indicators are mostly neutral now which suggest consolidation at these higher levels even though the immediate bias is for USD to edge higher to test the top of the expected 113.60/114.30 consolidation range”.
Next 1-3 weeks: “There is not much to add as USD traded mostly sideways yesterday. We continue to hold a neutral view and expect this pair to trade sideways within a broad 113.00/114.50 range. The key level to watch is at 114.50 as a break above this strong resistance could lead to a rapid rise. At this stage, there is no ‘early’ indication that a break higher is imminent”.