USD/JPY poised for further consolidation – UOB

According to strategists at UOB Group, USD/JPY keeps pointing to a continuation of the sideline theme between 103.00 and 105.20.

Key Quotes

“The high of 104.62 fell short of the target indicated at 104.65/70 yesterday. While upward momentum appears to have slowed a tad, a move above 104.65/70 seems likely. That said, the next resistance at 105.20 is unlikely to come into picture for now. On the downside, 104.00 is acting as a strong support”.

“While the undertone for USD is clearly positive, it is too early to expect the start of a fresh bullish phase. Any further upmove is expected to face stiff resistance at 105.20 ahead of the recent high of 105.50/55 which is a very strong level. All that said, the immediate upward pressure stays intact as long as the pull-back were to hold above 103.00 (103.50 is already a strong short-term support)”.

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