USD/JPY: volatile but downside not convincing - UOB

FXStreet (Guatemala) - Analysts at UOB noted that USD/JPY plunged below the key 116.45 support yesterday to touch a low of 115.97 but are not convinced on the downside case within all this volatility, and spot today is through the 200 sma on the hourly now.

Key Quotes:

"Despite the spectacular drop and the prevalent bullish JPY sentiment, we are not convinced that the current movement is the start of a sustained down-move in USD.

We prefer to hold a neutral view for now and expect this pair to trade within a broad 115.95/118.40 range for the next 1 to 2 weeks. That said, any unexpected daily closing below 115.95/00 would strongly indicate that a move towards 115 has started."