USD/JPY: Neutral, unless it post a daily close under 112.50 - UOB

Analysts from UOB Group, have a neutral bias on the USD/JPY pair. The outlook would become bearish, if a daily close below 112.50 takes place. 

Key Quotes: 

“Expectations for sideway trading yesterday was wrong as USD plunged to hit a low of 112.03 (retesting the low seen earlier this week). However, the downward pressure eased off quickly with the subsequent sharp bounce from the low.”

“An unexpected break below 112.00 could lead to acceleration lower to 111.50.”

“USD retested the 112.00/05 low seen earlier this week but rebounded strongly from the low to end the day at a much higher level (112.80). We continue to hold the view that only a daily closing below 112.50 would indicate that a move towards 111.30 has started. The odds for such a move have eased somewhat but as long as 113.95 is not taken out, it cannot be ruled out just yet.”