USD/JPY neutral, likely between 109.30/111.00 – UOB

FX Strategists at UOB Group remain neutral on the pair, expecting to gravitate between 109.30 and 111.00 in the next 1-3 weeks.

Key Quotes

“We suggested yesterday that “a temporary top is in place” and “the pull-back has room to extend lower to 109.90”. In line with expectation, USD dropped to hit an overnight low of 109.60. The strong decline appears to have scope to extend lower but the major support at 109.30 is unlikely to be seriously threatened (109.50 is already a strong support). Resistance is at 110.10 but the more significant level is near the 110.45 high seen early yesterday”.

“We just shifted to a neutral stance yesterday and there is no change to the view. The current movement is viewed as part of a consolidation phase and USD is expected to trade within a broad 109.30/111.00 range from here”.