USD/JPY rangebound between 108.20 and 109.80 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group noted the pair has carved a short term low and it is now poised to gravitate in the 108.20/109.80 range for the next weeks.

Key Quotes

“We highlighted yesterday that “downward momentum continues to wane and the risk of short-term low has increased considerably”.

“The break back above 109.30 (overnight high of 109.48) indicates that the 108.11 low seen on Monday (17/4) is a short-term low”.

“That said, it is too early to expect a sustained rebound and USD is more likely to trade sideways between 108.20 and 109.80 for now even though the immediate bias is for a probe higher towards the top of the expected consolidation range at 109.80. A break above this level would suggest a stronger rebound towards 111.55/60 has started”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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