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USD/JPY neutral, within 110.60/112.70 range – UOB

The pair’s outlook shifted to neutral from bullish, expecting it to gravitate between 110.60 and 112.70 in the short term.

Key Quotes

24-hour view: “The solid resistance highlighted at 112.70 yesterday was unthreatened as USD staged a surprisingly strong reversal from a high of 112.52. The rapid drop appears to be running ahead of itself even though a dip below the overnight low of 111.46 is not ruled out. That said, the next support at 111.10 is a major level and is unlikely to yield so easily. Resistance is at 112.05 followed by 112.35. Further up, the 112.70 level remains as a solid resistance and is not expected to be challenged for now”.

Next 1-3 weeks: “The bullish phase that started about 2 weeks ago (13 Sep, spot at 110.15) has ended with the breach of the stop-loss at 111.60 yesterday (low has been 111.46). The current movement is viewed as the start of a consolidation phase and USD is expected to trade sideways from here, likely between 110.60 and 112.70”.

EUR/GBP slide farther below 0.88 handle, hits fresh two-month lows

The EUR/GBP cross finally broke below an important horizontal support near 0.8775 level and fell to its lowest level since mid-July during early Europ
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USD/JPY risks tilted to the downside – Danske Bank

Christen Tuxen, Chief Analyst at Danske Bank, sees the pair grinding lower ahead of the snap elections, likely to be held in mid-October. Key Quotes
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