FXStreet reports that analysts at FX Strategists at UOB Group suggest that the potential test of the 108.40 in USD/JPY appears to be losing momentum as of late.

24-hour view: “USD flat-lined last Friday as it traded within a tight range of 14 pips (between 107.42 and 107.56), the smallest 1-day range this year. USD opened on a relatively firm note this morning and it could grind higher towards 107.85. For today, the next resistance at 108.15 is unlikely to come into the picture. Support is at 107.40 followed by 107.25.”

Next 1-3 weeks: “We highlighted on Tuesday (30 Jun, spot at 107.70) that ‘upward momentum is beginning to improve and USD could strengthen towards 108.40’. USD subsequently rose to a high of 108.14 before dropping back quickly and over the past couple of days, traded mostly sideways. Upward momentum has eased but only a break of 107.00 (no change in ‘strong support’ level) would indicate that the upside risk has dissipated. In other words, there is still chance for USD to move to 108.40 even though the odds for such a scenario have diminished.”