USD/JPY still constructive, aims to 112.10/80 – UOB

FX Strategists at UOB Group stay bullish on the pair, expecting a potential test of 112.00 handle and beyond.

Key Quotes

“The target indicated at 112.10 yesterday was not met as USD eased off quickly from a high of 111.78. A temporary top is likely in place and the current movement is viewed as part of a consolidation phase. In other words, expect sideway trading for today, likely between 111.00 and 111.70”.

“We just shifted to a bullish stance yesterday and there is no change to the view. Overbought short-term conditions could lead to a few days of consolidation first but as long as110.85 is intact, we continue to anticipate a break above 112.10 for a move towards 112.80”.