USD/JPY: No interest above the 108.00 level – OCBC

USD/JPY is trading in the red at 107.65 as declines -0.25% on a day at the press time. Terence Wu, an FX strategist at OCBC, expects the pair to remain within the 106.00-108.00 range and with the 55-DMA at 107.43 to hold the downside. 

Key quotes

“Firmer back-end UST yields provide some support for the USD/JPY, but the pair found little traction north of 108.00 early this morning.” 

“For now, any extension towards the 200-day MA (108.40) should be rejected in favour of staying within the established 106.00 to 108.00 range.”

“In the interim, the 55-day MA (107.43) should support on the downside.”