USD/JPY targets 110.90/95 in the near term – UOB

The pair keeps the neutral stance in the near term, likely to test the 110.90/95 band in the next 1-3 weeks.

Key Quotes

24-hour view: “USD closed at 110.25 last Friday but gapped lower upon opening this morning (hitting a low of 109.29). The rapid and strong recovery from the low appears to have scope to ‘close the gap’ but a sustained move above 110.25 seems unlikely (next resistance at 110.40 followed by 110.65). Support is at 109.50 followed by the low near 109.30”.

Next 1-3 weeks: “USD continues to trade in a choppy manner, hitting a high of 110.66 last Thursday before reversing quickly. While upward momentum has been dented with the swift pullback, we continue to hold the view that the current rebound from last week’s 108.25 low has room to extend higher to test the 110.90/95 resistance. At this stage, a sustained move above this level is not expected. Only a move back below 109.00 would indicate that the immediate upward pressure has eased”.