USD/JPY now targets 115.50 – UOB

FX Strategists at UOB Group remains bullish on the pair, expecting it to advance towards the mid-115.00s in the next 1-3 week.

Key Quotes

“USD extended its rally as expected and the inability to move beyond the major 114.35 resistance was not surprising (high has been 114.29). While the recent strong upward momentum has waned considerably, it is too early to expect a sustained pullback. This pair is more likely to trade sideways at these higher levels, likely between 113.75 and 114.30”.

“The bullish phase in USD is entering its third week and the strong daily closing above 113.55 last Friday suggests that there is scope for a break above 114.35, the high back in May. We indicated last Thursday that in order for USD to maintain its bullish impetus, it has to ‘move and stay above 113.55’ and now that the condition is met, the odds for further USD strength appear to be quite high. From here, a break above 114.35 could lead to acceleration higher as the next significant resistance is much further up at 115.50 (high in March)”.