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FX Strategists at UOB Group still see USD/JPY attempting a move to the 108.50 in the next weeks.

Key Quotes

24-hour view: “Yesterday, we expected USD to ‘rise to 108.15 first before a pullback can be expected’. Our expectation did not materialize as USD drifted lower from a high of 107.98. Momentum indicators have turned ‘neutral’ and for today, USD is expected to consolidate and trade between 107.35 and 108.00.”

Next 1-3 weeks: “After trading in a quiet manner for about a week, USD was jolted awake as it surged past the major 107.80 resistance (high of 108.08) before closing at 107.68 in NY (+0.33%). While we would prefer a daily closing above 107.80, the rapid pick-up in momentum suggests USD could head higher towards 108.50 in the coming days. At this stage, the prospect for a move to the next resistance at 108.90 is slim. Overall, the outlook for USD is positive as long as the ‘strong support’ at 107.15 is not taken out.”