USD/JPY dip-buyers seen around 108.70/109.00 – UOB

FX Strategists at UOB Group expects the pair to remain supported in the 108.70/109.00 band.

Key Quotes

“The post Jackson Hole weakness did not bring the pair below ¥109 as one would expect”.

“Comparing with the UST 10Y yields which has closed at the lowest levels since late June also signalled a positive divergence in the USD/JPY. In fact, on a weekly basis, JPY has declined 0.2% against the dollar”

“Retreating negative sentiments around the Korean Peninsula may add further support to the pair. Opportunistic low-pickers can look to buy 108.70 - 109.00, for a swing towards 111.00. Stops will be on daily close below 108.50”.