USD/JPY: A rally towards the 2017 high at 118.60 is on the cards – OCBC

USD/JPY continued to extend on risk dynamics, having breached the 2021 high and pushing through the 116.00 resistance. On Wednesday, the pair is trading in the negative territory near 116.00, and analysts at OCBC Bank prefer to buy dips towards 115.50/70 as USD/JPY could attempt to test the 2017 high of 118.60.

Immediate support seen at the 115.50/70 region

“Prefer to buy dips towards 115.50/70 in the near-term, where the immediate support level is seen.”

“Further out in the horizon, the 2017 high at 118.60 may be the next natural target, and cannot be explicitly ruled out for now.”