USD/JPY bullish, could visit 109.60 – UOB

Analysts at UOB Group have suggested that USD/JPY could climb further towards the 109.60 area.

Key Quotes

“The ease of which the major 106.80 resistance (high on the day of Brexit) was taken out bodes well for the current bullish USD view”.

“The bullish phase started last week when USD broke above the minor trend-line resistance”.

“At the time of writing, USD has breached the major falling trend-line connecting the late January 121.68 high and the late May high of 114.43”.

“Upward momentum is strong and impulsive and with the next significant resistance more than 200 pips higher from current level (at 109.60), USD could continue to accelerate higher in the coming days”.

“In order to maintain the impulsive momentum, any short-term pull-back should not move back below 105.80. Note that both the ‘target’ at 109.60 and ‘stop-loss’ at 105.80 could move as time goes by”.