USD/JPY: Biased lower with strong support at 106.50 – OCBC

Analysts at OCBC Bank are biased for the USD/JPY pair to go lower, but see some strong support at 106.50.

Key quotes

“On both technicals and short-term implied valuations, the bias is still for the USD/JPY to see some implicit heaviness. However, the support at 1.0650 may limit excessive downside moves.” 

“Continue to expect the pair to trudge a narrow range, so long as the USD remains the more reactive haven currency. Expect a near-term range between 106.50 and 107.50 for now.”