USD/JPY bullish above 113.50 – UOB

FX Strategists at UOB Group noted the pair needs a daily close above 113.50 to shift to a bullish outlook.

Key Quotes

“We just shifted from a bullish to neutral stance yesterday and there is no change to the view. That said, the sharp overnight swing higher came a surprise and this has shifted the immediate pressure to the upside”.

“From here, a daily closing above 113.50 would indicate that USD has re-entered a bullish phase. While the odds for such a move are not high for now, the upward pressure would increase quickly as long as the short-term support at 112.60 can hold for the next few days”.