No change in the neutral view around USD/JPY – UOB

UOB Group’s FX Strategists still see USD/JPY hovering around the 109.30-110.55 range in the short-term horizon.

Key Quotes

24-hour view: “We highlighted yesterday that ‘downward pressure has eased’ and we expected USD to ‘trade sideways within a 109.50/110.00 range’. Instead of trading sideways, USD rose to 110.12 before closing on a firm note at 109.99 (+0.34%). Upward momentum is beginning to build and USD could advance to 110.25. The major resistance at 110.55 is not expected to come into the picture. Support is at 109.85 followed by 109.70.”

Next 1-3 weeks: “Our narrative from last Thursday (19 Aug, spot at 109.90) still stands. As highlighted, USD could trade within a 109.30/110.55 range for a period of time.”