USD/JPY bullish now, focus on 106.00 – UOB

The recent close above 103.50 has allowed USD/JPY to change its outlook to bullish from neutral, suggested the research team at UOB Group.

Key Quotes

“We underestimated the USD strength as it sliced through major resistances to reach an overnight high of 104.97. The up-move is severely overbought now but impulsive momentum allows room for further extension to 105.50”.

“As highlighted yesterday, a daily closing above 103.50 would shift the outlook for USD to bullish. The immediate target is at 106.00 with a stop-loss at 102.40”.