USD/JPY volatility has eased this week. What is the technical near-term bias for the pair?
Here is their view, courtesy of eFXdata:
UOB Research discusses USD/JPY technical outlook and maintains a bullish bias in the near-term.
“We highlighted last Friday (03 Apr, spot at 108.00) that “risk of a short-term bottom has increased”. The breach of the 108.75 ‘strong resistance’ level earlier this morning indicates that last Tuesday (01 Apr) low of 106.89 is a short-term bottom,” UOB notes.
“The near-term bias is for USD to test the 110.40 level from here. A clear break of this level would indicate USD could extend towards last month’s top at 111.71.
On the downside, only a breach of 107.30 (‘strong support’ level) would indicate that the current upward pressure has eased,” UOB adds.
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