UBS sees an opportunity for a small trade
The FX spot desk at UBS recommends buying an intraday pullback in USD/JPY "around" 123.20 with a stop below 123.00. The initial target is 123.50/60 followed by 123.80.
We reported on heavy offers in the 123.50/60 zone yesterday. The session high so far today is 123.52 so some of the supply has been absorbed.
USD/JPY "ran out of momentum below 123.50 yesterday despite very positive risk sentiment but the downside was limited as well," UBS writes.
The low so far today is 123.22 and spot is trading flat on the day at 123.44.
The overall FX market is largely unchanged today as traders await the FOMC minutes.
