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UOB Group’s FX Strategists keep the mixed outlook unchanged for USD/JPY in the short-term horizon.

Key Quotes

24-hour view: “USD traded between 104.21 and 104.74 yesterday (higher than our expected range of 104.10/104.60) before closing slightly higher at 104.40 (+0.10%). The underlying tone has firmed somewhat and we see chance for USD to test 104.80 first before the risk of a pull-back would increase. For today, a sustained rise above 104.80 is unlikely. Support is at 104.30 followed by 104.00.”

Next 1-3 weeks: “The recent build-up in downward momentum fizzled out as USD popped above our ‘strong resistance’ level of 104.50 yesterday (high of 104.57). The outlook is mixed now and USD could trade sideways and only a clear break below 103.70 or above 103.80 would indicate the start of a more directional price action.”