USD/JPY remains locked with the 108.50-109.55 range for the time being, commented FX Strategists at UOB Group.
24-hour view: “We expected USD to ‘trade between 108.80 and 109.55’ yesterday. However, USD drifted lower to 108.74 before settling on a soft note at 108.75. Downward momentum has improved slightly and USD could continue drifting lower. However, any weakness is unlikely to break the major support at 108.50. Resistance is at 109.00 followed by 109.20.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (20 May, spot at 109.15). As highlighted, we continue to expect USD to trade within a 108.50/109.55 range for now. Looking further ahead, the risk of USD breaking the bottom of the range at 108.50 first appears to be higher but shorter-term price actions do not suggest a breach of this level is imminent.”
