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USD/JPY is still seen testing the 108.00 area in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for USD to “challenge 108.25″ did not materialize as it rebounded quickly after touching 108.33. Downward pressure has waned, and the current price action is viewed as part of a consolidation phase. In other words, USD is expected to trade sideways for today, likely between 108.30 and 108.70″.

Next 1-3 weeks: “When USD dropped to 108.23 last Thursday, we ‘upgraded’ the downside risk and indicated on Friday (15 Nov, spot at 108.50) that USD is “expected to trade with a downward bias towards 108.00″. While USD held above 108.23 and traded mostly sideways since then, we continue to the view that the risk is on the downside. That said, after the price action over the past few days, 108.00 may not come into the picture so soon. On the upside, only a break of 109.00 (‘strong resistance’ level previously at 109.15) would indicate that the current downward pressure has eased.