USD/JPY could still drift lower and test the 108.90 region in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected USD to ‘trade within a 109.10/109.60 range’ yesterday. However, USD dropped briefly to 109.21 before rebounding quickly to 109.65. The rebound has scope to extend but any advance is not expected to break the major resistance at 109.85. Support is at 109.40 followed by 109.25.”
Next 1-3 weeks: “We continue to hold the same view as from yesterday (10 Jun, spot at 109.40). As highlighted, USD is under mild downward pressure and could drift lower to 108.90. On the upside, a break of 109.85 would indicate that the current mild downward pressure has eased.”
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