USD/JPY sticks to the bearish outlook – UOB

FX Strategists at UOB Group noted the chances of testing 107.30 seem to have subsided somewhat for the time being.

Key Quotes

24-hour view: “USD dipped to a low of 108.40 before rebounding quickly. The subsequent quiet trading has resulted in a mixed outlook and further sideway trading seems likely. Expected range for today, 108.40/109.15”.

Next 1-3 weeks: “Despite hitting a ‘fresh’ low of 108.27 last Friday, downward momentum is not as impulsive as preferred and we continue to hold the view that the next ‘target’ at 107.30 is unlikely to come into the picture so soon. On a shorter-term note, 108.00 is a strong support and this level could hold out for a few more days. In other words, USD could trade sideways at these lower levels first before staging the next ‘leg’ lower towards 107.30. ‘Stop-loss’ for the bearish view is unchanged at 110.30 for now”.