USD/JPY still neutral near-term – UOB

The outlook on USD/JPY stays neutral for the time being, according to FX Strategists at UOB Group.

Key Quotes

“Instead of trading sideways as expected, USD not only moved below the 113.60 support but took out the rather solid level at 113.20 (low of 113.06). The down-move is accompanied by strong momentum and from here, as long as 113.75 is not taken out, another leg lower towards 112.70/75 seems likely”.

“The up-move from the 111.55/60 low last week has likely found a temporary top at 114.95 two days ago. From here, USD is deemed to have moved into a consolidation phase and is expected to trade between 112.30 and 114.50”.