USD/JPY keeps the rangebound theme unchanged – UOB

UOB Group’s FX Strategists noted USD/JPY still is seen navigating the 103.00-104.40 band in the next weeks.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways between 103.70 and 104.10’ yesterday. USD subsequently rose to 104.19 before dropping sharply to an overnight low of 103.55. While the rapid drop appears to be running ahead of itself, there is scope for USD to dip below the strong support at 103.50. For now, the next support at 103.25 is unlikely to come into the picture. Resistance is at 104.00 followed by 104.15.”

Next 1-3 weeks: “There is not much to add to our update from Wednesday (13 Jan, spot at 103.75). As highlighted, the outlook is mixed and USD could trade between 103.00 and 104.40 for now. Looking forward, the risk for a break of 104.40 first appears to be higher but USD could trade within the range for a while more.”