USD/JPY still neutral, in a 109.30/110.60 range – UOB

USD/JPY could extend further its sideline theme in the near term, likely between 109.30 and 110.60 in the next weeks.

Key Quotes

“While we expected the 110.61 high seen early yesterday to hold, the rapid pull-back came as a surprise. The pull-back seems incomplete but at this stage, any extension lower is unlikely to move below the strong 109.30 support”.

“As noted yesterday, despite the strong surge early yesterday, we are not convinced that USD has moved into a bullish phase. This pair has more likely moved into a higher 109.30/110.60 consolidation phase and only a daily closing above 110.60 would indicate that a move towards 111.55/60 has started. At this stage, the odds for a shift to a bullish phase appear to be roughly ‘even’.