According to FX Strategists at UOB Group, USD/JPY stays on track to advance further and targets the 106.00 level and probably above in the next weeks.
Key Quotes
24-hour view: “Our expectation for USD to ‘test 105.75 first’ was wrong as it eased to a low of 105.05. The underlying has weakened and the bias from here is tilted to the downside. That said, any weakness is unlikely to threaten the strong support at 104.40 (104.70 is already a strong level). Resistance is at 105.25 followed by 105.50.”
Next 1-3 weeks: “There is not much to add to our update from Tuesday (10 Nov, spot at 105.15). As highlighted, there is ‘room for the current strong advance in USD to test the major resistance at 106.10’. At this stage, the odds for a sustained rise above this level are not high. On the downside, a break of 104.40 (‘strong support’ level previously at 104.00) would indicate that USD is not ready for 106.10.”
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