FX Strategists at UOB Group note USD/JPY is expected to keep the 108.80-110.00 range for the time being.
Key Quotes
24-hour view: “Yesterday, we highlighted that ‘the sharp drop appears to be running ahead of itself but there is room for USD to dip below the strong support at 109.30’. Our expectation did not materialize as USD dipped to 109.31 before rebounding. While the underlying tone has firmed, any advance in USD is likely limited to a test of 109.80. The major resistance at 110.00 is not expected to come into the picture. Support is at 109.45 followed by 109.30.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (01 Jun, spot at 109.45). As highlighted, the recent USD strength has ended sooner than expected and USD is likely to consolidate and trade between 108.80 and 110.00 for now.”