USD/JPY downside pressure to 111.00 – UOB

FX Strategists at UOB Group stick to the neutral stance on spot, adding that a test of 111.00 still remains on the cards.

Key Quotes

“USD traded within a range of 111.53/112.22 yesterday, reasonably close to our expected 111.55/112.30 sideway trading range. From here, the weak underlying tone suggests that the immediate bias on the downside but at this stage, a sustained move below 111.35 is not expected (next support at 111.00). Resistance is at 112.15 but only a move back above 112.50 would indicate that the downward pressure has eased”.

“There is not much to add as USD hit a low of 111.53 yesterday before recovering quickly. As indicated yesterday, the immediate pressure is on the downside but at this stage, we do not envisage a sustained move below 111.00. Overall, this pair is expected to stay under pressure unless it can move and stay above 112.50”.