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FX Strategists at UOB Group noted USD/JPY is expected to trade within the 108.40-109.30 range in the very near term.

Key Quotes

24-hour view: “We highlighted yesterday the ‘rapid improvement in upward momentum suggests further USD gains towards 109.40’. However, USD eased off after touching 109.37. Upward pressure has more or less dissipated and for today, further USD strength appears unlikely. USD is more likely to consolidate and trade between 108.40 and 109.30.”

Next 1-3 weeks: “We highlighted last Friday (03 Apr, spot at 108.00) that ‘risk of a short-term bottom has increased’. The breach of the 108.75 ‘strong resistance’ level earlier this morning indicates that last Tuesday (01 Apr) low of 106.89 is a short-term bottom. The near-term bias is for USD to test the 110.40 level from here. A clear break of this level would indicate USD could extend towards last month’s top at 111.71. On the downside, only a breach of 107.30 (‘strong support’ level) would indicate that the current upward pressure has eased.”