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FX Strategists at UOB Group remain neutral on USD/JPY and expect it to keep the rangebound trade unchanged in the near term.

Key Quotes

24-hour view: “Expectation for USD to “move above 106.70″ last Friday was incorrect as it dropped sharply after touching 106.54. While downward momentum has not improved by much, there is room for the weakness in USD to test 105.80 first before stabilizing. For today, the next support at 105.50 is not expected to come into the picture. Resistance is at 106.35 followed by 106.60″.

Next 1-3 weeks: “USD surrendered some of Thursday’s gain as it closed lower by -0.19% (106.29) last Friday (30 Aug). The price action offers no fresh clues and we continue to expect USD to “trade sideways and within a broad range” for now. In other words, the outlook remains mixed and USD trade between 105.00 and 107.00 for a while more”.