FX Strategists at UOB Group keep the neutral stance on USD/JPY and expect it to trade within the familiar range in the near term.
Key Quotes
24-hour view: “USD traded between 105.64 and 106.22 yesterday, higher and narrower than our expected 105.40/106.10 range. Despite the relatively firm daily closing (106.11), upward momentum has not improved by much. That said, USD could test 106.35 but the next resistance at 106.70 is not expected to come into the picture. Support is at 105.90 followed by yesterday’s low near 105.65″.
Next 1-3 weeks: “USD rebounded and recouped all of Tuesday’s (27 Aug) decline. The ‘one day up, one day down’ price action offers no fresh clues and we continue to hold the view that USD is likely to “trade sideways and within a broad range”. As highlighted on Tuesday (27 Aug, spot at 106.00), the outlook is mixed and USD could trade between 105.00 and 107.00 for now”.
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