USD/JPY could fail just below the 109.00 handle – UOB

FX Strategists at UOB Group noted the pair’s upside could be limited around the 109.00 neighbourhood in the near term.

Key Quotes

24-hour view: “USD gapped higher upon opening this morning. Further USD strength is not ruled out but for today, any up-move is likely limited to a test of 108.95 (minor resistance is at 108.75). Support is at 108.15 followed by last Friday’s low near 107.85”.

Next 1-3 weeks: “Our view for USD to “extend its weakness” did not really materialize as it traded sideways for most of last week. Downward momentum has eased considerably and while the current ‘negative phase’ in USD is still intact, the odds for further weakness have diminished. However, only a break of 109.30 (no change in ‘key resistance’ level) would indicate that the end of the ‘positive phase’ and the start of a ‘sideway-trading phase’”.