USD/JPY bullish near term, eyes on 114.50 – UOB

FX Strategists at UOB Group stay bullish on spot, expecting a test of the mid-114.00s in the next weeks.

Key Quotes

24-hour view: “USD rebounded strongly without testing the 113.10 support (low of 113.24). While the recovery has room to move above the 114.09 high seen on Monday, the next major resistance at 114.50 is likely out of reach, at least for today. Support is at 113.55 followed by the low near 113.25. The latter level is to be ‘safe’ for now”.

Next 1-3 weeks: “We highlighted yesterday that “another push higher is not ruled but USD has to surmount 113.80 within these 1 to 2 days or the odds would diminish quickly”. USD closed at 113.89 in NY and from here, the 114.50 target is back in sight. That said, 114.50 is major resistance and it may not be easy to crack (at least the first time round). On the downside, 113.25 is a strong support ahead of the stop loss at 112.90 (level unchanged)”.