In view of FX Strategists at UOB Group, recent lows in the 111.60 region could be considered as a short-term bottom in USD/JPY.
Key Quotes
24-hour view: “USD traded sideways as expected, albeit at a narrower range than anticipated. The consolidation phase appears incomplete and further range trading is expected from here, likely within a 112.15/112.70 range”.
“As highlighted, the 111.61 low registered on Monday (15 Oct) is likely a short-term bottom and USD has moved into a 111.80/113.30 consolidation range. Looking ahead, the risk of a break of the bottom of the range appears to be higher but even then, any decline has to contend with the rather strong support zone between 111.50 and 111.60″.
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