USD/JPY: Upside momentum loses traction – UOB

UOB Group’s FX Strategists noted USD/JPY moved once again into a consolidative phase.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways within a 109.70/110.10 range’ yesterday. USD subsequently traded within a 109.83/110.15 range before closing little changed at 109.98 (+0.05%). Momentum indicators are still mostly neutral and USD could continue to trade sideways. Expected range for today, 109.80/110.20.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (10 Sep, spot at 109.93). As highlighted, the recent build-up in upward momentum has fizzled out and USD is still consolidating within a range of 109.30/110.55. Note that USD has traded between 109.30 and 110.55 for about a month now.”