Outlook on USD/JPY still unclear near term – UOB

The outlook on USD/JPY appears so far unclear although some consolidation seems likely in the short-term horizon.

Key Quotes

24-hour view: “The unexpected sharp drop in USD appears incomplete and the immediate bias is on the downside. That said, downward momentum is not strong and any weakness is likely limited to a test of last week’s low near 110.10. Resistance is at 110.75 followed by 111.00”.

Next 1-3 weeks: “USD continues to trade in a choppy manner and we continue to hold a neutral view for now. As highlighted in recent updates, the outlook is unclear and USD is likely trading within a broad 109.85/111.50 range for now”.