FXStreet reports that FX Strategists at UOB Group suggest that USD/JPY could have now likely moved into a consolidative phase within the 110.30-111.7 range.

24-hour view: “We expected USD to weaken last Friday but we were of the view that ‘a break of the strong support at 111.10 appears unlikely’. We indicated that the next support is at 110.80. The subsequent weakness exceeded our expectations as USD dropped to 110.89. Downward momentum has not improved by much but USD could edge lower and test 110.80 first before the risk of a rebound would increase. Resistance is at 111.20 followed by 111.35.”

Next 1-3 weeks: “USD subsequently cracked the ‘strong support’ level at 111.10 (low of 110.89). The USD strength that started more than a week ago has come to an end. The current movement is viewed as the early stages of a consolidation phase and USD is likely to trade between 110.30 and 111.70 for now.”