USD/JPY: Further gains seem likely above 111.95 – UOB

A more sustainable advance in USD/JPY is probable on a breakout of the 111.95 level in the near term, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘trade within a 111.15/110.60 range’ yesterday. USD subsequently rose to 111.65 before settling at 111.59. Upward momentum is beginning to improve and the bias for today is on the upside towards 111.95. Last week’s high at 112.07 is a solid resistance and is unlikely to break. Support is at 111.50 followed by 111.35.”

Next 1-3 weeks: “On view from Wednesday (06 Oct, spot at 111.50) still stands. As highlighted, shorter-term upward momentum is beginning to build but USD has to close above 111.95 before a sustained advance can be expected. At this stage, the prospect for USD to close above 111.95 is not high but it would increase as long as USD does not move below 111.15 (‘strong support’ level previously at 110.90).”