USD/JPY remains bullish, 114.50 targeted – UOB

The pair’s stance remains positive and allows a potential test of the 114.50 area in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While USD dipped initially, the low of 113.33 did not quite challenge the strong 113.25 support. The subsequent strong surge higher appears to have scope to extend higher to test the major 114.50 resistance (minor resistance at 114.25). On the downside, 113.70 is a strong support ahead of the low near 113.35”.

Next 1-3 weeks: “There is not much to add as USD traded in a relatively quiet manner yesterday. The outlook remains bullish but as highlighted in recent updates, 114.50 is a major level and is expected to offer solid resistance. That said, a clear break of this critical level could lead to a rapid rise to 115.00. On the downside, stop-loss is adjusted higher to 113.30 from 112.90 previously”.