USD/JPY still neutral near term – UOB

The research team at UOB Group expects USD/JPY to prolong its 101.20/103.30 range in the next 1-3 weeks.

Key Quotes

“While USD rebounded strongly after touching a low of 101.92 (to touch an overnight high of 102.74), the up-move was quickly reversed as we saw a sharp drop to 101.72 during Sydney hours earlier. Downward momentum has picked up quickly and the current USD weakness could extend lower towards the 101.40 low seen on Tuesday. At this stage, a sustained move below this level is not expected”.

“The neutral phase that started last Wednesday (7/9//16) is still intact as USD continues to choppily within a broad range. We prefer to stay neutral for now and expect further choppy sideway trading in the coming days, likely within a broad 101.20/103.30 range”.