USD/JPY clings to the sideline pattern – UOB

FX Strategists at UOB Group have noted USD/JPY remains within a broader 115.50/118.60 range for the time being.

Key Quotes

“USD edged above the 117.45/50 resistance indicated yesterday to hit a high of 117.52. The unexpected sharp and swift drop from the high is gaining momentum rapidly and the immediate bias is clearly tilted to the downside. That said, any weakness is unlikely to have enough momentum to move below last week’s low near 115.00/05 (minor support at 115.40)”.

“USD touched a high of 117.52 yesterday but the up-move was short-lived. The rapid drop has shifted the short-term risk to the downside but at this stage, it is too early to expect a sustained down-move. That said, a move below last week’s 105.00/05 would not be surprising and such a development would indicate a deeper probe towards the major 114.00 support has started”.