USD/JPY sticks to the neutral bias – UOB

The pair continues to face a rangebound theme in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to move to 107.75 yesterday but were of the view that the next resistance at 108.05 is likely out of reach. In line with expectation, USD eased off after touching a high of 107.90. Upward momentum is beginning to wane but it is too early to expect a significant pullback. From here, a push higher to test the 108.05 resistance would not be surprising but a sustained move above this level is not expected (next resistance is at 108.50). Only a move back below 107.30 would indicate that a temporary top is in place”.

Next 1-3 weeks: “We just shifted from a bearish to neutral stance yesterday and there is no change to the view. USD has likely moved into a consolidation phase and is expected to trade sideways for now, likely within a broad 106.30/108.50 range”.