The bearish view still persists in USD/JPY – UOB

USD/JPY is still seen heading towards the 108.00 region in the short-term horizon, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded in a quiet manner between 108.64 and 108.99 yesterday, narrower than our expected sideway-trading range of 108.50/109.10. While USD is likely to continue to trade sideways, the slightly weakened underlying tone suggests a lower trading range of 108.50/108.95.”

Next 1-3 weeks: “After reversing sharply from the Monday’s (02 Dec) peak of 109.72, USD as not been able to make much headway on the downside. However, we continue to detect a weak underlying tone and still expect USD to ‘trade with a downward bias towards 108.05’. Only a move above 109.20 (no change in ‘strong resistance’ level) would indicate that our view is wrong.”