USD/JPY still within 110.50/112.00 – UOB

FX Strategists at UOB Group stay neutral on the pair, expected to meander between 110.50 and 112.00 in the next weeks.

Key Quotes

“In line with expectation, USD moved lower to test the 110.50 support (overnight low of 110.45). Despite the bounce from the low, the undertone is still weak and a retest of the overnight low seems likely. Resistance is at 111.05 but only a move back above 111.30 would indicate that the immediate downward pressure has eased”.

“USD edged below the expected 110.50/112.00 consolidation range to hit a low of 110.45 before rebounding quickly. While the undertone is weakening, any decline from here is expected to encounter solid support near the month-to-date low of 110.20. That said, the current mild downward pressure would continue to increase unless USD can move back above 111.50 within these few days”.