Now it is expected that USD / JPY moves between 110.60 and 111.65 in the next few weeks, note the currency strategists at UOB Group.
24 hour view: “We expected USD / JPY to strengthen last Friday, but we are of the opinion that ‘deeply overbought conditions suggest 111.95 could be out of reach.’ Subsequently, USD / JPY rose to 111.65, but fell sharply to 110.94 during the session. The upward pressure has dissipated and the current move is seen as part of a consolidation phase. For today, USD / JPY is likely to trade between 110.85 and 111.35. “
Next 1-3 weeks: “The positive phase in USD / JPY that started last Thursday (Jul 1, USD / JPY at 111.05) ended quickly as USD / JPY plunged and broke our ‘strong support’ level at 111.00 last Friday (low of 110.94). The breakout of strong support amid a rapid loss of momentum indicates that USD / JPY has likely moved into a consolidation phase. From here, USD / JPY could trade between 110.60 and 111.65 over a period of time. of time.”