USD/JPY: No change in the neutral stance – UOB

USD/JPY is still seen trading between 109.30 and 110.55 for the time being, noted FX Strategists at UOB Group,

Key Quotes

24-hour view: “We highlighted yesterday that ‘the underlying tone has weakened somewhat and USD could edge lower to 109.55’. We added, ‘the next support at 109.30 is not expected come under threat’. Our expectations were not wrong as USD dropped to 109.40 before rebounding. Downward pressure has eased and for today, USD is likely to trade sideways, expected to be within a 109.50/110.00 range.”

Next 1-3 weeks: “Our narrative from last Thursday (19 Aug, spot at 109.90) still stands. As highlighted, USD could trade within a 109.30/110.55 range for a period of time.”