USD/JPY rangebound between 110.50/112.50 – UOB

FX Strategists at UOB Group stick to the neutral outlook for the pair in the near term.

Key Quotes

“While USD traded mostly sideways, the undertone is still negative and this pair is expected to drift lower towards the 110.85 support (next support at 110.50)”.

“USD dipped to a low of 110.85 last Friday before rebounding quickly. There is no change the neutral outlook for USD and we continue expect sideway trading, albeit within a narrower 110.50/112.50 range (from 110.20/113.10 previously). Looking further ahead, the downside appears to be more vulnerably but solid support can be expected at 110.50 ahead of the month-to-date low near 110.20”.