USD/JPY is still seen navigating the 134.75-137.00 range in the short term, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the current movement appears to be part of a consolidation phase’ and we expected USD to ‘trade within a range of 135.30/136.30’. Our view for consolidation was not wrong even though USD traded within a narrower range than expected (135.52/136.22). Further consolidation appears likely but the slightly firmed underlying tone suggests a higher range of 135.50/136.50.”

Next 1-3 weeks: “We continue to hold the same view as from Tuesday (05 Jul, spot at 135.95). As highlighted, the current movement appears to be part of a broad consolidation phase and USD is likely to trade between 134.75 and 137.00 for now.”