USD/JPY bullish, targets 112.20 – UOB

FX Strategists at UOB Group stay bullish on the pair, expecting a potential test of the 112.20 area.

Key Quotes

“While USD exceeded the 111.55/60 target (overnight high of 111.77), the sharp pull-back from the high was unexpected. A temporary top is likely in place and this pair has likely moved into a consolidation phase. In other words, range trading is expected for today, likely between 110.80 and 111.70”.

“USD took out 111.55/60 as expected with a high of 111.77. The rapid set-back from the high suggests the start of a short-term consolidation phase that may last for a couple of days. As long as 110.30 is not taken out, we continue to target a move to 112.20”.