USD/JPY in a 111.80/113.50 range – UOB

In opinion of FX Strategists at UOB Group, the pair’s outlook stays neutral, likely between 111.80 and 113.50 in the next week.

Key Quotes

“USD dipped to a low of 112.06 before reversing quickly to close at 112.71 last Friday (just below the high of 112.81). It extended its up-move to a high of 113.10 early this morning before easing off. The current USD strength appears to be over-extended and while a move above 113.10 is not ruled out, a sustained move above this level is not expected (next resistance at 113.35)”.

“The bullish phase that started on 26 Apr, (spot at 111.20) has ended when USD moved below the stop-loss at 112.20 last Friday (low of 112.06). Despite moving above 113.00 early this morning (high of 113.10), upward momentum is not strong and we view the current price action as part of a 111.80/113.50 consolidation range”.