USD/JPY still bullish, targets 111.45 – UOB

In view of FX Strategists at UOB Group, the outlook on USD/JPY remains bullish and could attempt a test of 111.45 in the next 1-3 weeks.

Key Quotes

“The major resistance highlighted at 111.40/45 yesterday was unchallenged as USD slipped after touching a high of 111.36. While a short-term top is likely in place, it is too early to expect a sustained pull-back. From here, allow for a bounce to 111.00 but 111.40/45 is expected to cap for a down-move to 110.05”.

“USD touched a high of 111.36, just below the revised target of 111.45. The current rally is severely overbought now but confirmation of a short-term is only upon a breach of 109.20. Until then, another attempt towards 111.40/45 cannot be ruled out just yet”.

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