USD/JPY still within range near term – UOB

In opinion of FX Strategists UOB Group, the pair remains rangebound within the 111.30/112.80 range.

Key Quotes

24-hour view: “USD dropped sharply albeit briefly to a low of 111.41 last Friday. The subsequent sharp swing higher coupled with the strong opening early this morning has shifted the pressure quickly to the upside. From here, a move above 113.00 would not be surprising but there is another close-by resistance at 113.15 and this level is unlikely to yield so easily (next resistance is further up at 113.70). Support is at 112.35 followed by 111.90. A move to last Friday’s 111.41 low is not expected”.

Next 1-3 weeks: “We highlighted last Friday that while a move above the top of the expected 111.30/112.80 consolidation range is not ruled out, only a clear break above 113.15 would suggest a stronger recovery towards 113.70 has started. The high registered earlier this morning has been 112.98 and we continue to see strong resistance at 113.15. That said, the odds for a clear break above this level have improved and would continue to improve as long as 111.30 is intact. On a shorter-term note, 111.90 is already quite a strong support”.