USD/JPY: Extra gains remain on the cards – UOB

In opinion of FX Strategists at UOB Group, USD/JPY could attempt a move higher although it is seen within the broader 107.00-109.00 range.

Key Quotes

24-hour view: “Our view for USD to ‘advance to 108.20 first before a pullback can be expected’ did not materialize as it traded between 107.29 and 108.07 last Friday. The underlying tone still appears to be firm and USD could still move up to 108.20. That said, the next resistance at 108.50 is unlikely to come into the picture. Support is at 107.50 followed by 107.25.”

Next 1-3 weeks: “There is not much to add to our view from last Thursday (16 Apr, spot at 107.70). As highlighted, the current recovery in USD could extend higher but any advance is viewed as part of a 107.00/109.00 range. In other words, a sustained advance above 109.00 is unlikely.”