USD/JPY: above 113.50 could test 114.35 – UOB

In view of FX Strategists at UOB Group, extra gains in spot lies ahead once 113.50 is cleared.

Key Quotes

“Against our expectation, USD did not move above the major 113.50 resistance (high of 113.47)”.

“Upward momentum is waning rapidly and 113.50 is expected to continue to offer solid resistance (minor resistance at 113.35). From here, a dip below the 112.71 low registered yesterday seems likely but any weakness is unlikely to extend below the next support at 112.40”.