USD/JPY is now expected to embark on a consolidative phase in the next weeks, likely within the 128.00-130.80 range.

Key Quotes

24-hour view: “We highlighted last Friday that USD ‘appears to have moved into a consolidation phase and it is likely to trade between 129.10 and 130.55’. Our view for consolidation was not wrong even though USD traded within a narrower range than expected (129.45/130.27). We continue to expect USD to consolidate, likely within a range of 129.35/130.30.”

Next 1-3 weeks: “There is not much to add to our latest update from last Thursday (26 Jan, spot at 129.25). As highlighted, the current movement in USD is likely part of a consolidation phase and we expect USD to trade within a range of 128.00/130.80 for now.”