USD/JPY: Door open for a probable move to 108.90 – UOB

The downside pressure could drag USD/JPY to the 108.90 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded in a quiet manner between 109.18 and 109.55 yesterday. Momentum indicators are mostly neutral and sideway-trading would not be surprising, albeit likely within a wider range of 109.10/109.60.”

Next 1-3 weeks: “Despite the relatively quiet price actions the past couple of days, the underlying tone for USD appears to be a tad soft. The bias is for USD to drift lower to 108.90. On the upside, a break of 109.85 would indicate that the current mild downward pressure has eased.”