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FX Strategists at UOB Group now see USD/JPY advancing to the 109.30 region in the near term.

Key Quotes

24-hour view: “Our view yesterday was that the “advance in USD could test 109.00 first before easing off”. USD subsequently touched 108.96 before ending the day at 108.84. While the advance appears to be ‘struggling’ to maintain its momentum, there is scope for USD to test 109.15 first. For today, a break of the next resistance at 109.30 seems unlikely. On the downside, a break of 108.65 would indicate that the current upward pressure has eased”.

Next 1-3 weeks: “We indicated on Monday (08 Jul, spot at 108.45) that USD is expected to “stay supported” and that “a sustained gain only if it can move and stay above 108.80″. USD cracked 108.80 and closed just above it at 108.84 in NY. Upward momentum has improved and from here, we expect further USD strength to 109.30. Only a break of the 108.35 ‘key support (previously a strong support at 108.10) would indicate that the current upward pressure has eased. Looking ahead, the next resistance above 109.30 is at 109.60″.