USD/JPY still bullish near term – UOB

As noted by FX Strategists at UOB Group, the pair keeps the bullish stance unchanged, targeting the 112.80 area in the next weeks.

Key Quotes

“USD traded in a range of 111.04/111.72 yesterday, relatively close to our expected consolidation range of 111.00/111.70. The consolidation phase appears incomplete and we continue to anticipate range trading between 111.00 and 111.70”.

“USD traded mostly sideways yesterday and the consolidation is not unexpected in view of the overbought short-term conditions. As long as 110.80 is not taken out, we continue to anticipate a break of 112.10 for a move to 112.80”.