USD/JPY in a 109.20/111.05 range – UOB

Spot is expected to navigate within a 109.20/111.05 range in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While we indicated yesterday the 111.05 resistance was “unlikely to be seriously threatened”, the abrupt and rapid drop from a high of 110.94 was clearly not expected. The decline appears to have scope to extend lower towards 109.75 but the next support at 109.40 is unlikely to come into the picture for now. Resistance is at 110.40 followed by 110.70. The 110.94 high is likely ‘safe’ for today”.

Next 1-3 weeks: “USD eased off rapidly without testing the top of the expected 109.20/111.05 consolidation range. We continue to hold a neutral stance for now and expect further choppy trading within the range mentioned above”.