USD/JPY still targets 112.14 near term – UOB

FX Strategists at UOB Group appear neutral on the pair while noted that 112.14 remains the next near term target.

Key Quotes

24-hour view: “After trading sideways for most of yesterday, USD broke above 111.45 during NY hours and hit a high of 111.82. While the advance appears to be running ahead of itself, there is scope for USD to move above the 111.82 high. That said, a move beyond the major 112.14 resistance would come as a surprise. Support is at 111.45 but only a break of 111.25 would indicate that the current upward pressure has eased”.

Next 1-3 weeks: “After trading sideways for several days, USD finally moved higher yesterday and hit a high of 111.82. The probability for a move above 112.14 has clearly improved but patchy momentum suggests that a sustained move above this level is unlikely. The next resistance above this level is at 112.65. All in, we continue to expect USD to stay underpinned until the ‘key support’ at 110.90 is taken out (level was previously at 110.50)”.