USD/JPY seen sidelined around 109.30/110.60 – UOB

FX Strategists at UOB Group reiterated the neutral stance on the pair in the short-term.

Key Quotes

“While we indicated last Friday that a short-term low is likely in place at 108.11, the strong surge upon opening this morning was unexpected”.

“The rally took out several resistances with a high of 110.61. The undertone has improved considerably and the immediate risk is tilted to the upside but at this stage, we are not convinced that USD has moved into a bullish phase”.

“This pair has more likely entered into a higher 109.30/110.60 range and only a daily closing above 110.60 would indicate that a move towards 111.55/60 has started”.