USD/JPY could extend the move up to 109.50 – UOB

In light of the ongoing performance in USD/JPY, FX Strategists at UOB Group suggested it could re-visit the 109.50 region in the next weeks.

Key Quotes

24-hour view: “USD edged to a high of 108.97 before ending the day on a firm note at 108.90 (+0.24%). Upward momentum has picked up and USD could extend its gains towards 109.15. For today, a move beyond the next resistance at 109.30 is unlikely. Support is at 108.75 followed by 108.60”.

Next 1-3 weeks: “USD closed on a firm note yesterday (108.90, +0.23%) and the recent downward pressure has eased (we previously expected USD to trade with a downward bias towards 108.00). From here, USD is likely to trade sideways even though the uptick in momentum suggests it is likely to probe the top of the expected 108.50/109.50 range first”.