USD/JPY is now focused on 108.00 and above – UOB

Further recovery in USD/JPY is expected to surpass 108.00 in the next weeks, always framed within a broad rangebound theme, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our anticipation for a ‘break of 108.00 could lead to quick rise in USD’ did not materialize as USD spent another day trading in a quiet manner (between 107.50 and 107.93). Such prolonged period of narrow trading ranges is not common and we continue to see risk a ‘break-out’. The overall bias is tilted to the upside and if USD ‘punches’ through 108.00, it could rise swiftly towards 108.40. Support is at 107.50 followed by 107.25.”

Next 1-3 weeks: “There is not much to add to our view from last Thursday (16 Apr, spot at 107.70). As highlighted, the current recovery in USD could extend higher but any advance is viewed as part of a 107.00/109.00 range. In other words, a sustained advance above 109.00 is unlikely.”