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FX Strategists at UOB Group still expect USD/JPY to re-visit the 109.00 handle in the next weeks.

Key Quotes

24-hour view: “Expectation for USD to edge above 109.00 yesterday did not materialize as it slipped after touching 108.94. Upward momentum has waned and the current movement is viewed as part of a consolidation phase. In other words, USD is expected to trade sideways, likely between 108.35 and 108.85″.

Next 1-3 weeks: “There is not much to add to the update from last Friday (26 Jul, spot at 108.65). As highlighted, while USD is “expected to test the solid 109.00 resistance”, it is unclear for now if USD can maintain a toehold above this level. The lackluster price action over the past couple of days offers no fresh clue and USD has to ‘punch’ above 109.00 and register a NY closing above this level in order to indicate that it is ready to tackle 109.60. Meanwhile, 108.10 is still acting as a strong support and only a break of this level would indicate that the current mild upward pressure has waned”.