USD/JPY clings to the bullish stance – UOB

FX Strategists at UOB Group reiterated the bullish stance on the pair, likely to test 114.90 ahead of 115.50 in the next weeks.

Key Quotes

“Expectation for further upward extension was wrong as USD dropped sharply from a high of 114.36. A short-term top is likely in place and the current movement is viewed as the early stages of a consolidation phase. In other words, USD is expected to trade sid4eways for now, likely within a 113.50/114.20 range”.

“The pullback from the high of 114.36 yesterday was deeper than expected (low of 113.44). While the stop-loss for our bullish view at 113.30 is still intact, upward momentum has been dented and USD has to recover above 114.20 within these 1 to 2 days or risk of a break below 113.30 would increase quickly”.