USD/JPY neutral, further rangebound expected – UOB

FX Strategists at UOB Group see the pair extending its neutral stance in the near term, likely between 110.10 and 111.70.

Key Quotes

24-hour view: “The major support indicated at 109.50 last Friday was unchallenged as USD rebounded sharply from a low of 109.82. While the strong up-move appears to be running ahead of itself, a test of the strong 111.20 level is not ruled out (next resistance at 111.50 is not expected to come into the picture) Support is at 110.45 followed by 110.10. The 109.82 low is acting as a very solid support now and is unlikely to be threatened, at least not for today or the next couple of days”.

Next 1-3 weeks: “The bearish phase that started on 31 Jul ended abruptly when USD surged and took out the stop-loss at 110.85 last Friday. Despite the strong rebound, it is too early to expect a bullish reversal. USD is more likely to trade sideways from here, likely within a broad 110.10/111.70 range. Those who sold at 110.55 would have taken a loss of -0.23%”.