USD/JPY outlook now shifted to neutral – UOB

Following the recent price action in USD/JPY, the research team at UOB Group shifted its outlook to neutral from bullish.

Key Quotes

“While the bullish phase that started last week extended to a high of 107.47 yesterday, Kuroda’s comment led to a plunge in USD to a low of 105.41”.

“The breach of the 105.80 stoploss indicates that the bullish phase has ended”.

“The outlook for USD from here is viewed as neutral and the current movement is likely part of a broad consolidation phase. In other words, expect sideway trading from here, likely between 104.00 and 107.00”.