USD/JPY: a break above 109.75 remains on the table – UOB

In opinion of FX Strategists at UOB Group, USD/JPY does not rule out a move beyond 109.75 in the next weeks.

Key Quotes

24-hour view: “USD traded between 108.88 and 109.26 yesterday, lower and narrower than our expected 109.00/109.50 range. Momentum indicators are still mostly ‘neutral’ and USD could continue to trade sideways for now. Expected range for today, 108.85/109.25”.

Next 1-3 weeks: “There is not much to add to our update from last Friday (08 Nov, spot at 109.30). We continue to hold the view that as long as USD stays above 108.65 (no change in ‘strong support’ level), the “risk of a break of 109.75 cannot be ruled out”. That said, USD could not afford to dither as a consolidation below the solid resistance level of 109.70 would quickly increase the risk of a short-term top”.