Further upside in USD/JPY remains on the cards, with the next target at 107.80, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “USD traded between 107.11 and 107.69 yesterday, relatively close to our expected consolidation range of 107.10/107.80. The current movement is still viewed as part of a consolidation phase even though the weakened underlying tone suggests USD is likely to trade within a lower range of 106.85/107.55.”
Next 1-3 weeks: “The sudden surge higher in USD that easily took out the strong 107.50 resistance yesterday was unexpected. While upward momentum has picked up considerably, USD has to clear the 107.80 resistance first before further sustained advance can be expected (next resistance is at 108.50) The prospect for a such a scenario is quite high but in order to maintain the current build-up in momentum, USD should not move back below the ‘strong support’ level at 106.60 within these few days.”
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