USD/JPY seen re-testing the 109.60 area – UOB

FX Strategists at UOB Group noted USD/JPY needs to close above 109.00 to allow a potential visit of the 109.60 zone.

Key Quotes

24-hour view: “Our view of sideways trading between 108.35 and 108.85 largely panned out overnight. Rallies ahead the big figure 109.00 were quickly faded. That said, undertone has moved to be slightly positive”.

Next 1-3 weeks: “As highlighted, while USD is “expected to test the solid 109.00 resistance”, it is unclear for now if USD can maintain a toehold above this level. The lackluster price action over the past couple of days offers no fresh clue and USD has to ‘punch’ above 109.00 and register a NY closing above this level in order to indicate that it is ready to tackle 109.60. Meanwhile, 108.10 is still acting as a strong support and only a break of this level would indicate that the current mild upward pressure has waned”.