FXStreet reports that FX Strategists at UOB Group suggest that USD/JPY will remain within a consolidation mood between 105.00 and 106.00 in the next weeks.

24-hour view: “...USD rose to a high of 105.79 before closing on a relatively firm note at 105.72 (+0.37%). Further USD strength is not ruled out but overbought conditions suggest that a move beyond the major resistance at 106.00 is unlikely. On the downside, a break of 105.45 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Last Friday (02 Oct, spot t 105.55), we indicated that USD ‘is likely to trade between 105.00 and 106.00 for now’. USD subsequently dropped to a low of 104.92 before rebounding quickly and closed slightly lower at 105.33 (-0.16%). Momentum indicators are still mostly ‘neutral’ and the price actions indicate that USD could trade between 105.00 and 106.00 for a while more. Looking forward, USD has to post a daily closing out of the 105.00/106.00 range before a more sustained directional movement can be expected.”