USD/JPY still seen within 109.10-110.15 – UOB

USD/JPY is forecast to navigate between 109.10 and 110.15 for the time being, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “The strong surge in USD to a high of 109.83 last Friday came as a surprise. The rapid advance has room to test 109.95 but a sustained rise above this level is unlikely. Support is at 109.55 followed by 109.30.”

Next 1-3 week: “We have expected USD to ‘drift lower to 108.90’ since middle of last week. We highlighted that ‘a break of 109.85 would indicate that the current mild downward pressure has eased’. USD soared to a high of 108.83 last Friday and while 109.85 is still intact, downward pressure has more or less dissipated. Momentum indicators have turned neutral and USD is likely to trade between 109.10 and 110.15 for now.”