USD/JPY sees further gains above 109.75 – UOB

In view of strategists at UOB Group, USD/JPY should extend its upside above recent highs at 109.75 in the near term.

Key Quotes

“While the failure to reach 110.00 was not surprising, the rapid and sharp pull-back from the high of 109.75 was surprising. It is getting increasingly likely that this USD is trying to find a short-term top”.

“USD touched a high of 109.75 yesterday but pulled back rapidly to close lower for the day. The odds for further USD strength have clearly diminished unless there is sharp rise above 109.75/00 within these 1 to 2 days. We have advocated taking partial-profit at 109.00 previously and from here, stop-loss is adjusted higher to 108.20 from 107.00 previously”.

To learn more about this topic, check our video analysis: