USD/JPY points to a test of 110.00 – UOB

In opinion of strategists at UOB Group, USD/JPY keeps its bullish stance unchanged and could now attempt a visit to the key barrier at 110.00.

Key Quotes

“Despite severely overbought conditions, USD continues to surge with solid pace. This coupled with the strong daily closing suggests that a move above the overnight high of 109.33 would not be surprising”.

“The next resistance is higher up at 110.00 but based on the still rather overbought conditions, this level is likely out of reach for now. On the downside, support is at 108.70 followed by 108.30”.

“The partial profit-taking level of 109.00 indicated yesterday was exceeded as USD continues to surge at a solid pace despite severely overbought conditions”.

“There is no sign of an imminent top and the next level to aim for is at 110.00. Above this level, the next significant resistance is at 111.40/45, high seen in late May”.

“Stop-loss is adjusted higher to 107.00 from 106.30 even though 108.30 is already a strong shorter term support”.

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