USD/JPY points to extra consolidation – UOB

FX Strategists at UOB Group noted the pair has moved into a consolidation phase in the near term.

Key Quotes

24-hour view: “The relatively strong gains in USD yesterday came as a surprise. While upward momentum is not exactly strong, the current advance in USD is not showing sign of slowing just yet. From here, USD is likely to grind higher but the major 113.30 resistance is not expected to be challenged (minor resistance is at 113.05). Support is at 112.60 but the stronger level is at 112.35”.

Next 1-3 weeks: “There is not much to add as USD edged higher and touched an overnight high of 112.88. The high is well within the expected 111.80/113.30 consolidation range that we first indicated last Thursday (18 Oct, spot at 112.65). Indicators are mostly ‘flat’ and at this stage, there is no early indication that USD is ready to break out the range”.