USD/JPY could attempt a move to 109.50 – UOB

The ongoing performance of USD/JPY could extend to the 109.50 region in the short-term, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to “extend its gains to 109.15” yesterday and held the view “a move beyond 109.30 is unlikely”. USD subsequently popped to a high of 109.19 before trading mostly sideways. While the advance appears to be struggling to maintain its momentum, there is scope for USD to test 109.30 first before a pull-back can be expected. For today, the next resistance at 109.50 is not expected to come into the picture. On the downside, a breach of 108.80 (minor support at 108.95) would indicate the current upward pressure has eased”.

Next 1-3 weeks: “USD closed on a firm note yesterday (108.90, +0.23%) and the recent downward pressure has eased (we previously expected USD to trade with a downward bias towards 108.00). From here, USD is likely to trade sideways even though the uptick in momentum suggests it is likely to probe the top of the expected 108.50/109.50 range first”.