USD/JPY remains side-lined and is expected to trade between 126.90 and 129.40 in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We expected USD to ‘consolidate and trade sideways between 127.40 and 128.80’ yesterday. USD subsequently traded between 127.71 and 128.70. The price actions still appear to be part of a consolidation even though the slightly firmed underlying tone suggests a higher trading range of 128.00/129.00.”

Next 1-3 weeks: “Our view from yesterday (21 Apr, spot at 128.20) still stands. As highlighted, USD has likely moved into a consolidation phase and is expected to trade within a range of 126.90/129.40 for now.”