USD / JPY is still at risk of further decline on the short-term horizon, as noted by currency strategists from UOB Group.
24 hour perspective: “We highlighted yesterday that the outlook for the USD still seemed to be on the dovish side, but any weakness was unlikely to challenge the main support at 107.65. However, the USD traded relatively quietly between 107.86 and 108.28 before closing little changed at 108.05 (-0.03%). The underlying tone still seems a bit weak, but any weakness is considered part of a lower range of 107.80 / 108.25. In other words, a clear break out of 107.80 is unlikely ”.
Next 1-3 weeks: “The USD traded quietly and our last narrative on Tuesday (April 20, pair at 108.15) still stands. As highlighted, the USD is likely to weaken further, but main support at 107.65 may not enter the scene as soon. On the upside, a breakout of 108.55 (previously ‘strong resistance’ level at 108.85) would indicate that the pullback in the USD that started about 2 weeks ago has run its course. Looking ahead, the next support below 107.65 is at 107.30 “
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