USD/JPY still eyes a test of 111.50 – UOB

FX Strategists at UOB Group remains neutral on the pair, which still targets a potential move to the mid-111.00s.

Key Quotes

24-hour view: “USD traded between 111.87 and 112.49 last Friday, relatively close to our expected 111.80/112.50 consolidation range. With most indicators at ‘neutral’ levels, further range trading seems is expected for today, likely between 111.80 and 112.50”.

Next 1-3 weeks: “USD traded in a quiet manner last Friday and registered an ‘inside day’ before closing largely unchanged (NY close of 112.19, +0.02%). While the overall outlook is deemed as neutral, the current correction in USD has scope to extend lower to 111.50. At this stage, a sustained decline below this level seems unlikely. On the upside, only a break of the ‘key resistance’ at 113.00 would indicate that the current weak phase in USD has stabilized”.