USD/JPY outlook shifted to bullish from neutral – UOB

FX Strategists at UOB Group sees there is room for the pair to test the 112.20 region in the near term.

Key Quotes

“The strong rally in USD yesterday was unexpected. The up move appears incomplete and further USD strength towards the 111.55/60 high seen earlier this month seems likely”.

“The strong daily closing above the Monday’s peak of 110.60 has shifted the outlook for USD to bullish. While the rapid surge is already approaching the strong 111.55/60 resistance, a break above this level would not be surprising. The next resistance is at 112.20. In order to maintain the current momentum, any pullback should not move back below 110.30”.