USD/JPY keeps its neutral outlook – UOB

The pair should remain within the broader 115.50/118.50 range in the near term horizon, according to FX strategists at UOB Group.

Key Quotes

“USD exceeded the 117.80/85 target to hit a high of 118.60 but the up-move was quickly reversed. The sharp drop from the high suggests that a temporary top is in place but for now, any further decline is expected to find solid support at 117.10. Resistance is at 118.10 and the 118.60 high is unlikely to be challenged for today”.

“While USD edged above the top end of our expected sideway consolidation range of 118.50 yesterday (high of 118.60), we continue to view the current strength as part of a broader consolidation and not the start of a sustained up move. That said, a test of 119.00 would not be surprising but at this stage, only a sustained break above this level is not expected”.