It is anticipated that the pair USD / JPY will maintain the range of 110.60-111.65 for now, note the currency strategists at UOB Group.
24 hour view: “Yesterday we highlighted that ‘the upward pressure has dissipated and the current movement is seen as part of a consolidation phase’ and we expected that the USD / JPY ‘will trade between 110.85 and 111.35’. Subsequently, the US / JPY moved in a range of 110.78 / 111.18 before closing little changed at 110.96 (-0.07%). The underlying tone has weakened and USD / JPY is likely to be biased to the downside, but a clear breakout of 110.60 is little. likely (next support is at 110.30). On the upside, a breakout of 111.10 would indicate that the current mild pressure to the downside has eased. “
Next 1-3 weeks: “Not much to add to our update yesterday (July 5, US / JPY at 111.10). As highlighted, USD / JPY has likely moved into a consolidation phase and is likely to trade between 110.60 and 111.65 for a period of time. “