FX Strategists at UOB Group do not rule out further upside in USD/JPY, although any move should be considered as part of a broad trading range.
24-hour view: “We expected USD to ‘continue to consolidate within a 107.40/108.00 range’ yesterday. USD subsequently traded between 107.26 and 107.89, wider than our expected range. The consolidation phase over the past few days appears to be close to ending. From here, a break of 108.00 could lead to a rapid rise towards 108.40. Support is at 107.50 followed by 107.25.”
Next 1-3 weeks: “There is not much to add to our view from last Thursday (16 Apr, spot at 107.70). As highlighted, the current recovery in USD could extend higher but any advance is viewed as part of a 107.00/109.00 range. In other words, a sustained advance above 109.00 is unlikely.”