USD/JPY is still seen trading within the 114.75-116.05 range in the short term, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected USD to ‘to consolidate and trade between 115.10 and 115.80’. USD subsequently traded within a higher range than expected (115.24/115.87). Upward momentum has improved a tad and the bias is on the upside. That said, any advance is not expected to break the major resistance at 116.05. On the downside, a breach of 115.40 (minor support is at 115.55) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from Monday (14 Feb, spot at 115.40). As highlighted, the current movement is viewed as part of a consolidation and USD is likely to trade between 114.75 and 116.05 for now.”