USD/JPY neutral outlook unchanged near term – UOB

In opinion of FX Strategists at UOB Group, the pair remains within a rangebound theme in the short-tern horizon.

Key Quotes

24-hour view: “Expectation for USD to move higher to 107.95 was wrong as it plummeted to hit an overnight low of 106.54. The rapid drop appears to be running ahead of itself but there is scope for a dip below the 106.36 low seen earlier this week. However, a break below the next support at 105.80 is not expected. The 107.52 high registered yesterday is expected to be strong enough to cap any intraday recovery (minor resistance is at 107.10)”.

Next 1-3 weeks: “USD continues to trade in a choppy manner and there is no change to our neutral view. We continue to expect further choppy trading, likely within a relatively broad 105.80/108.30 range”.