USD/JPY keeps the 107.60/109.00 range unaltered – UOB

USD/JPY is expected to navigate within the 107.60-109.00 broad range in the very near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for USD to ‘dip below’ 107.00 was wrong as it rebounded sharply and swiftly after touching 107.10. Downward pressure has dissipated and from here, USD could edge higher but any advance is viewed as part of a 107.60/109.00 range (a sustained advance above 109.00 is not expected.”

Next 1-3 weeks: “We highlighted last Friday (27 Mar, spot at 109.70) that ‘a short-term top is in place’ and added, ‘USD could weaken further to 107.00’. From here, 107.00 appear to be within reach. The next support level of note below 107.00 is nearer to 105.90. On the upside, the ‘strong resistance’ level has moved lower to 109.80 from Friday’s level of 110.60.”