USD/JPY still targets 114.95 near term – UOB

The upside momentum in USD/JPY could see a test of 114.95 in the next weeks according to FX Strategists at UOB Group.

Key Quotes

“The sudden acceleration higher was unexpected as USD took out successive strong resistances. While clearly overbought, the current rally appears to have scope to extend further to 114.45/50. However, last month’s peak at 114.95 is not expected to come under serious threat”.

“While USD is holding just below the expected 112.00/114.20 consolidation range indicated yesterday, the rapid pace of the rebound suggests that extension towards 114.95 would not be surprising. This is a rather strong resistance and is unlikely to yield so easily. All in, the current positive undertone is expected to stay intact unless there is a move back below 112.70 (minor support at 113.35)”.