USD/JPY could edge higher and re-visit the 108.40 region in the next weeks, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “The rapid decline in USD after touching a high of 108.16 came as a surprise (USD dropped sharply to a low of 107.35). The decline appears to be running ahead of itself and further weakness in USD is unlikely. USD is more likely to consolidate and trade sideways at these lower levels, expected to be between 107.30 and 107.70.”
Next 1-3 weeks: “USD moved above the top of our expected 106.40/107.80 range yesterday (high of 107.87). Upward momentum is beginning to improve and USD could strengthen towards 108.40. As the build-up in momentum is still in its nascent stage, it is too early to expect a sustained move towards 108.40. On the downside, a breach of 107.00 (‘strong support’ level) would indicate that the current upward pressure has eased.”
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