USD/JPY neutral, likely within 111.45/112.90 range – UOB

In opinion of FX Strategists at UOB Group, the pair’s outlook is poised to remain neutral in the next 1-3 weeks.

Key Quotes

24-hour view: “We highlighted last Friday that “the immediate bias is on the downside” but were of the view that “any weakness is unlikely to seriously challenge the 111.70 support”. USD managed to dip below 111.70 and touched a low of 111.67. The decline appears to be running ahead of itself and while a retest of 111.65/70 seems likely, the next support at 111.45 is unlikely to come under serious threat. On the upside, only a move back above 112.25 would indicate that the immediate downward pressure has eased”.

Next 1-3 weeks: “We continue to hold a neutral USD view even though as highlighted in recent updates, the immediate bias is tilted to the downside but at this stage, any weakness is unlikely to move clearly below the expected 111.45/112.90 consolidation range. After the dip to a low of 111.67 last Friday, the undertone has weakened but based on the lackluster momentum, the odds for a sustained down-move are not high”.