USD/JPY a test of 105.25 appears likely – UOB

The door remains open for the  pair to attempt a new visit to the 105.25 level, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for a higher USD was wrong as it dropped to a low of 105.59 before rebounding quickly. Indicators are mostly neutral which suggest sideway trading from here. Expected range for today; 105.60/106.35”.

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”.