USD/JPY still eyes a visit to 105.25 – UOB

In view of FX Strategists at UOB Group, the pair remains sidelined and could still attempt a test of 105.25 in the near term.

Key Quotes

24-hour view: “USD traded between 105.66 and 106.30 yesterday, relatively close to our expected 105.60/106.35 consolidation range. Indicators are still mostly neutral and further sideway consolidation seems likely from here. Expected range for today; 105.65/106.40”.

Next 1-3 weeks: “USD dipped below our expected 105.70/107.50 consolidation last Friday and hit a low of 105.59. While the decline lacks momentum, the undertone has weakened and from here, a retest of the month-to-date low of 105.25 seems likely. At this stage, the prospect for a clear break of this level is not high. Overall, only a move back above 106.80 would indicate that the current mild downward pressure has eased”.