USD/JPY could attempt a move above 112.00 – UOB

FX Strategists at UOB Group believe USD/JPY could still aim for a test of the 112.00 mark and above in the next weeks.

Key Quotes

24-hour view: “USD traded between 109.65 and 111.59 yesterday, relatively close to our expected 109.50/111.50 range. However, USD moved lower after NY close and downward pressure is building up. From here, barring a move above 111.50, USD is expected to drift lower to 109.50. For today, the odds for sustained drop below this level are not high.”

Next 1-3 weeks: “While USD moved above last Friday’s 111.50 high, it retreated quickly after touching 111.59. Upward momentum is showing early sign of tiring but only a break of 108.50 (‘strong support’ level previously at 107.50) would indicate that a temporary top is in place. Until then, another push upwards towards 112.20 is not ruled out just yet.”