USD/JPY neutral, sidelined between 103.00 and 105.20 – UOB

In view of the FX Research team at UOB Group, USD/JPY keeps the neutral stance and signals further rangebound between 103.00 and 105.20.

Key Quotes

“The strong surge this morning is accompanied by strong upward momentum and the immediate bias is still tilted to the upside. That said, any further up-move is expected to face stiff resistance near 104.65/70 (next resistance is at 105.20). On the downside, 103.50 is likely strong enough to hold any short-term pull-back”.

“We indicated last Friday that despite the overall negative undertone for USD, a sustained move below the key 102.50 support is unlikely. The strong surge early this morning indicates that the recent pull-back has stabilized. However, it is too early to expect a bullish reversal and USD is more likely to trade sideways, likely within a broad 103.00/105.20 range”.

To learn more about this topic, check our video analysis.