USD/JPY points to 113.80 in the next weeks – UOB

In opinion of FX Strategists at UOB Group, USD/JPY now looks to visit the 113.80 area in the near term.

Key Quotes

“We noted in yesterday’s update that in order for USD to maintain its bullish momentum, it has to break above the strong 111.45 resistance within a couple of days”.

“While the breach of this level was not surprising, the subsequent surge higher that easily took out several major resistances was not exactly expected”.

“Nevertheless, the bullish phase that started 2 weeks ago is clearly intact and the next level to focus on is at 103.80, the minor high seen in late March this year”.

“Stop-loss is moved higher substantially from 109.70 to 111.00 even though the ‘break-out’ level of 111.40/45 should be strong enough to hold any short-term pull-back”.

To learn more about this topic, check our video analysis: