USD/JPY still bullish above 113.20 – UOB

In view of FX Strategists at UOB Group, the pair’s positive stance remains unchanged while above 113.20.

Key Quotes

“As indicated yesterday, the recent USD strength appears to have scope to extend higher but any up-move is expected to face stiff resistance at 114.90. USD touched a high of 114.95 and plummeted from there to hit an overnight low of 113.83. The wild swing is viewed as part of a broader consolidation phase and further choppy trading seems likely”.

“USD hit a high of 114.95 yesterday but eased off quickly. Despite the sharp pull-back, the positive undertone is still intact and another leg higher to test the major 115.35/40 resistance cannot be ruled out just yet (even though the odds for such a move have diminished). On the downside, solid support can be expected at 113.20 and only a break of this level would indicate the rebound from last week’s 111.55/60 low has found a temporary top”.