USD/JPY eyes on 111.30 near term – UOB

USD/JPY could slip towards the 111.30 area in the next 1-3 weeks, suggested FX Strategists at UOB Group.

Key Quotes

“Expectation for another leg lower towards 111.30 was wrong as USD rebounded strongly from a low of 111.57. The subsequent choppy swings have resulted in a rather mixed outlook and range trading seems likely from here even though the immediate bias is for a probe higher towards the top end of the expected 112.00/113.00 range”.

“The key short-term resistance indicated at 112.90 yesterday is still intact. As long as this level is not taken out, the immediate bias is still tilted to the downside even though the sharp rebound yesterday has clearly diminished the odds for another leg lower to 111.30”.