USD/JPY: The next hurdle of note emerges at 107.00 – UOB

USD/JPY’s upside is predicted to meet the next resistance at the 107.00 area in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘consolidate and trade between 105.80 and 106.40’ was wrong as it jumped to a high of 106.69. Waning momentum coupled with overbought conditions suggest further USD strength is unlikely. USD is more likely to trade sideways within a 106.00/106.70 range.”

Next 1-3 weeks: “We turned positive USD last Thursday, 25 Feb when it was trading at 105.90. After USD rose further, we noted on Friday that ‘upward momentum has improved and the focus now is at 106.70’. USD subsequently rose to 106.69. Further USD strength is not ruled out but overbought shorter-term conditions could lead to consolidation first. Looking ahead, the next resistance is at 107.00. On the downside, the ‘strong support’ level has moved higher to 105.65 from 105.40.”