USD/JPY neutral, likely between 111.30/112.80 – UOB
The pair keeps the neutral stance in the near term and is likely to stay rangebound within the 111.30/112.80 range.
24-hour view: “The anticipated USD strength exceeded our expectation by moving above the strong 112.50 resistance (high of 112.63). The undertone is still clearly positive and a move above the next strong resistance at 112.80 would not be surprising. Further up, the next resistance is at 113.15 and this level is unlikely to come into the picture for now. Support is at 112.25 followed by 111.95”.
Next 1-3 weeks: “We shifted from a bearish to neutral stance yesterday but the subsequent strong rise in USD was not exactly anticipated. The rally is approaching the top end of our expected 111.30/112.80 consolidation range and while an intraday move above 112.80 is not ruled out, we are not convinced that any up-move can be sustained. Only a clear break above 113.15 would suggest a stronger recovery towards 113.70 but the odds for such a move are not high at this stage”.