USD/JPY still neutral near term – UOB

FX Strategists at UOB Group keep the neutral outlook on the pair unchanged in the near term.

Key Quotes

24-hour view: “USD dropped sharply upon opening early yesterday but subsequently traded sideways. Further range trading still seems likely even though the immediate bias is for a probe higher towards the top of the expected 109.50/110.15 consolidation range”.

Next 1-3 weeks: “USD continues to trade in a choppy manner, hitting a high of 110.66 last Thursday before reversing quickly. While upward momentum has been dented with the swift pullback, we continue to hold the view that the current rebound from last week’s 108.25 low has room to extend higher to test the 110.90/95 resistance. At this stage, a sustained move above this level is not expected. Only a move back below 109.00 would indicate that the immediate upward pressure has eased”.