USD/JPY now looks to 105.76 – UOB

The upside momentum in USD/JPY could extend to the 105.76 and beyond in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘could edge above 105.20’. We added, ‘the next resistance at 105.45 is not expected to come into the picture’. Our view was not wrong as USD rose to 105.41 before settling on a firm note at 105.36 (+0.41%). Upward momentum has improved considerably and USD is likely to advance further. That said, the month-to-date high at 105.76 could be just out of reach. Support is at 105.20 followed by 105.00.”

Next 1-3 weeks: “Yesterday, we indicated that USD is ‘likely to trade sideways between 104.40 and 105.60’. The rapid manner by which USD approaches 105.60 came as a surprise. Shorter-term momentum has improved considerably and a break of 105.60 would not be surprising. Looking ahead, if USD breaks the month-to-date high of 105.76, it would shift the focus to 106.00. All in, USD is expected to trade with an upward bias as long as it does not move below 104.80 within these few days.”