USD/JPY a low term should be in place above 111.50 – UOB

FX Strategists at UOB Group noted the possibility that a low could be in place above 111.50.

Key Quotes

“USD traded mostly sideways after touching a high of 111.31 (target indicated at 111.50 was not met). The undertone still seems positive and another attempt to move towards 111.50 is expected. That said, a sustained break above this level seems unlikely for now (next resistance at 111.85). Support is at 110.75 but the stronger level is closer to 110.55”.

“While USD closed largely unchanged yesterday, the recent downward pressure has eased further. However, only a daily closing above 111.50 would indicate that a short-term low is in place (and the start of a sustained recovery to 112.30). This appears to be a likely scenario unless USD was to drop back below 110.55 within these few days”.