USD/JPY: Outlook remains mixed – UOB

USD/JPY is now expected to navigate within the 114.55-115.80 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “While USD rose sharply to 115.42 last Friday, upward momentum has barely improved. That said, USD could test 115.50 first before a more sustained pullback is likely. The next resistance at 115.70 is unlikely to come under threat. On the downside, a breach of 114.80 (minor support is at 115.00) would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “The price actions in USD the past one week or so have relatively choppy as it rose to 115.68, dropped to 114.14 before rebounding. The outlook is mixed and USD is likely to trade between 114.55 and 115.80 for now. Looking ahead, the upside risk appears to be greater but USD has to break 115.80 first before a sustained advance is likely.”