USD/JPY seen within 113.00/114.50 range – UOB

USD/JPY keeps the neutral outlook and is expected to gravitate within the 113.00/114.50 range in the near term.

Key Quotes

24-hour view: “The abrupt turnaround from a low of 112.95 was unexpected. The undertone remains positive and a breach of the strong 113.85 resistance could lead to a test of 114.10. At this stage, a sustained move above 114.10 is not expected (the next level at 114.50 is a major resistance). Support is at 113.35 followed by the 112.95 low. The low is unlikely to come into the picture, at least not for today”.

Next 1-3 weeks: “We shifted from a bullish to neutral stance yesterday and the subsequent strong rebound from a low of 112.95 came as a surprise. Despite the strong recovery, we continue to hold the same view even though USD is expected trade at a higher 113.00/114.50 range (instead of 112.40/113.85 expected previously). Looking further ahead, USD has to break clearly above 114.50 to indicate the start of a fresh bullish phase”.