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USD/JPY continues to target the key support at the 108.00 handle in the near-term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday “there is scope for rapid drop in USD to extend lower but any weakness is likely limited to a test of 108.40″. However, USD traded in a relatively quiet manner between 108.44 and 108.84 before settling on a soft note at 108.53. We continue to detect a weak underlying tone and from here, USD could challenge last week’s low near 108.25. The next support at 108.00 is not likely to come into the picture for today. Resistance is at 108.70 followed by 108.85″.

Next 1-3 weeks: “USD rose to 109.06 yesterday, not far below our 109.15 ‘strong resistance’ level. As highlighted last Friday (15 Nov, spot at 108.50), only a break of 109.15 would indicate that the current downward pressure has eased. Until then, the bias is still on the downside even though after yesterday’s price action, 108.00 may not come into the picture so soon (the minor support at 108.25 may temporarily check any decline in USD)”.