USD/JPY expected to remain firm – UOB

The pair is seen extending the current upside momentum although 112.14 still appears a tough barrier, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded at a much wider range than expected as it rose to a high of 111.53 before easing off. While upward momentum is patchy at best, the positive underlying tone suggests that USD could grind higher and test the 111.80 resistance. At this stage, the odds for a sustained move above this level are not high (there is another major resistance near 112.15). Support is at 111.20 but only a move back below 110.95 would indicate that the current mild upward pressure has eased”.

Next 1-3 weeks: “While USD closed on a relatively strong note yesterday (NY close of 111.44, +0.33%), we are not convinced that the current price action is the start of a bullish phase. However, further advance in USD is not ruled out but last month’s 112.14 peak is a solid resistance and is likely out of reach (at least for the next one week or so). On the downside, 110.75 is acting as a solid support now”.