USD/JPY bullish, on its way to 113.80? – UOB

The pair’s perspective remains bullish so far, now targeting the 113.80 area in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted last Friday that “a dip below the 112.24 overnight low is not ruled out but 111.90 is unlikely to be challenged”. In line with expectation, USD dipped to a low of 112.19 before rebounding. The recovery appears to have room to extend higher but 112.95 is acting as a strong resistance now and is unlikely to yield so easily (next resistance is at 113.20). Support is at 112.40 followed by 112.15”.

Next 1-3 weeks: “USD traded in a relatively narrow range last Friday and there is no change to our current bullish view. The current short-term consolidation is expected to be resolved with a ‘break’ higher towards the 113.80 target. Stop-loss remains unchanged at 111.90 for now even though on a shorter-term now, 112.15/20 is already a strong support”.