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According to FX Strategists at UOB Group, USD/JPY risks extra losses in the next weeks.

Key Quotes

24-hour view: “We highlighted last Friday that ‘there is room for USD to edge higher but any advance is viewed as part of a 103.35/103.75 range’. We added, ‘a clear break of 103.75 is unlikely’. The subsequent USD strength exceeded our expectations as it soared to 103.88 before closing on a firm note at 103.77 (+0.28%). While the advance appears to be running ahead of itself, there is room for USD to test 104.00 first before a pull-back can be expected. For today, USD is unlikely to challenge the strong resistance at 104.20. On the downside, a break of 103.50 would indicated the current upward pressure has eased (minor support is at 103.65).”

Next 1-3 weeks: “There is not much to add to our latest narrative from last Thursday (21 Jan, spot at 103.55). As highlighted, the bias for USD is tilted to the downside but any weakness is likely limited to a test of the major support at 103.00. On the upside, a break of 104.20 would indicate the current mild downward pressure has eased.”