USD/JPY could advance further and attempt to reach the 106.00 level and above in the near-term, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our expectation for USD to move above 105.64 did not materialize as it traded between 104.79 and 105.48 before closing slightly lower at 105.28 (-0.08%). The current movement in USD is likely part of a consolidation phase and for today; it is likely to trade sideways between 104.80 and 105.55.”
Next 1-3 weeks: “We indicated yesterday (09 Nov, spot at 103.30) that USD ‘is still under pressure’ and added, ‘a daily closing below 103.00 could lead to further weakness to 102.55’. However, the 103.00 level remain untested (low of 103.18) as USD lifted off suddenly and surged to a high of 105.64 before closing at 105.36 (+1.96%, its biggest 1-day gain since March). The sudden surge and outsized expansion in range has clouded the outlook but strong shorter-term momentum suggests that there is room for the current strong advance in USD to test the major resistance at 106.10. Support is at 104.40 but only a break of 104.00 (‘strong support’ level) would indicate that USD is not ready for 106.10.”
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