USD/JPY keeps the neutral view near term – UOB

Spot is expected to remain within a 110.50/112.00 range in the short term, noted FX Strategists at UOB Group.

Key Quotes

“We indicated yesterday that USD is “expected to drift lower towards the 110.85 support with next support at 110.50”. USD hit a low of 110.64 and the subsequent weak recovery suggests further downward pressure to test the 110.50 support (next support is at 110.20)”.

“There is not much to add as USD edged down to touch a low of 110.64 yesterday. While downward momentum is ticking higher, at this stage, any weakness is expected to encounter solid support near 110.50 ahead of the critical month-to-date low of 110.20. All in, we continue to hold a neutral stance and expect this pair to trade in a broad 110.50/112.00 range (narrowed from 110.50/112.50 previously) even though the downside appears to be increasingly vulnerable”.