USD/JPY still looks to a test of 114.54 – UOB

FX Strategists at UOB Group, the pair remains neutral but chances of a test of 114.54 remains unchanged in the next weeks.

Key Quotes

24-hour view: “The strong 114.20 resistance highlighted yesterday held as expected as USD eased off after touching a high of 114.14. The pull-back from the high has scope to extend lower but 113.40 is solid support and is unlikely to yield so easily. That said, a break of this level could lead to a rapid drop to 113.00. Resistance is at 114.00 followed by the strong rather strong level at 114.20”.

Next 1-3 weeks: “There is not much to add as USD closed unchanged (around 113.80) for three days in a row. For now, we continue to see chance for USD to visit last month’s top at 114.54 and only a break of the 113.20 ‘key support’ would indicate that a short-term top is in place. That said, upward momentum has deteriorated and a prolonged consolidation around current level would quickly increase the risk of a short-term top”.