USD/JPY is now expected to keep the range bound theme between 121.00 and 124.00 in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations for USD to ‘move higher to 123.30’ yesterday were incorrect as it dropped to 121.26 before rebounding. The current price actions appear to be part of a broad consolidation and USD is likely to trade between 121.30 and 122.60 for today.”

Next 1-3 weeks: “Two days ago (30 Mar, spot at 122.80), we highlighted that the recent USD rally has come to an end and we expect USD to consolidate and trade between 121.00 and 124.50. There is no change in our view even though a 121.00/124.00 range is likely enough to contain the movement in USD, at least for these few days. Looking ahead, a clear break of 121.00 would indicate that USD could pullback in a sustained manner.”