USD/JPY: Support at 107.00 is considerable – OCBC

USD/JPY may enter a near term rangebound, consolidation mood in the coming sessions, with the pair corridors between 107.00 and 109.00, OCBC Bank’s strategist Terence Wu briefs.

Key quotes

“Continue to expect consolidation between 107.00 and 109.00, after the pair bounced higher after approaching the 107.00 level for the second consecutive session.” 

“Downside support at 107.00 is considerable, and may prevent further downside extension.” 

“Expect resistance at 108.50, before 109.00. Note that short-term implied valuations have effectively flat-lined.”