USD/JPY keeps the neutral stance intact near term – UOB

According to FX Strategists at UOB Group, the pair is poised to keep the erratic trade although always within the recent broad range.

Key Quotes

24-hour view: “The ‘target’ indicated at 105.90 yesterday was exceeded as USD dropped to a low of 105.77. The subsequent strong rebound from the low indicates that a short-term bottom is in place. The current recovery appears incomplete and further upward extension towards 106.60 seems likely. The odds for a test of the next resistance at 106.90 are lower. Support is at 106.05 followed by the low near 102.77. The latter level is unlikely to come into the picture for today”.

Next 1-3 weeks: “There is not much to add as USD rebounded after touching a low of 105.77. This low is just above our expected 105.70/107.50 consolidation range. The outlook remains unclear and we continue to hold a neutral stance and expect USD to continue to trade choppily within a relatively broad 105.70/107.50 range”.