USD/JPY neutral, still within 108.50/110.50 range – UOB

The pair’s near term outlook remains neutral, with the likelihood of a probable test of the upper end of the 108.50/110.50 range, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of trading sideways (as expected yesterday), USD broke above the 110.10 resistance and hit a high of 110.26. From here, the positive undertone could lead to a grind higher even though the major 110.50 resistance is unlikely to yield so easily. Support is at 109.90 but the stronger level is at 109.55”.

Next 1-3 weeks: “USD traded within relatively narrow ranges for the past couple of days and the muted price action offers no fresh clues. We continue to hold a neutral view even though on a shorter-term basis, the bias is for USD to probe the top of the expected 108.50/110.50 consolidation range”.