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USD/JPY remains under pressure and a move to the 108.40 region remains on the cards for the time being, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded between 108.96 and 109.26 yesterday, narrower than our expected sideway-trading range of 108.70/109.25. We continue to view the current movement as part of a sideway-trading phase and expect USD to trade between 108.80 and 109.25.”

Next 1-3 weeks: “USD traded in a relatively quiet manner yesterday (29 Jan) as it eased off after testing the short-term 109.25 resistance. The price action offers no fresh clues and we continue to hold the same view form Tuesday (28 Jan, spot at 108.95) wherein USD is still under pressure and “could weaken further to 108.40”. Only a move above 109.50 (no change in ‘strong resistance’ level) would indicate the current weakness has stabilized.”