USD/JPY: Outlook remains positive near-term – UOB

USD/JPY keeps the constructive bias unchanged for the time being, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for a pullback did not materialize as USD traded in a quiet manner between 104.90 and 105.10. Momentum indicators are mostly neutral and further sideway-trading would not be surprising. Expected range for today, 104.80/105.20.”

Next 1-3 weeks: “There is not much to add to our update from Tuesday (02 Feb, spot at 104.85). As highlighted, upward momentum has improved slightly and while the outlook for USD is still positive, the major resistance at 105.40 may not come into the picture so soon. The positive outlook is deemed intact as long as USD does not move below 104.50 (‘strong support’ level previously at 104.25).”