FX Strategists at UOB Group noted USD/JPY could likely trade within the 109.20/110.60 range in the next weeks. We expected USD to "consolidate and trade between 109.50 and 110.10" yesterday. However, it popped up to 110.28 before dropping back down. The underlying tone appears to have weakened somewhat and USD could edge lower but any decline is not expected to break the support at 109.50. Resistance is at 110.05 followed by 110.20.
Our update from yesterday (28 Jul, spot at 109.85) still stands. As highlighted, the recent choppy price actions have resulted in a mixed outlook and USD could trade within a 109.20/110.60 range for now.