USD/JPY sticks to the mixed outlook – UOB

FX Strategists at UOB Group maintain the mixed outlook for USD/JPY, which is expected to keep navigating within the 114.40-116.30 range in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘there is room for USD to extend but a clear break of 115.90 appears unlikely’. Our view was not wrong as USD rose to 115.78 before closing at 115.66 (+0.67%). USD traded on firm note during early Asian hours and upward momentum is beginning to build. USD could advance further but based on the current momentum, is unlikely to challenge the major resistance at 116.30 (there is another resistance at 116.10). Support is at 115.60 followed by 115.40.”

Next 1-3 weeks: “We highlighted yesterday (08 Mar, spot at 115.45) that the outlook is mixed and we expect USD to trade within a relatively broad range of 114.40/116.30. While shorter-term upward momentum has improved somewhat, there is no change in our view for now. Looking ahead, USD has to break the major resistance at 116.30 before a sustained advance is likely.”