USD/JPY now eyes 109.70 – UOB

The pair’s outlook now allows for a test of the 109.70 area, according to analysts at UOB Group.

Key Quotes

“USD/JPY staged a partial bounce-back on speculation about BoJ easing next month, following comments by BoJ Governor Kuroda as well as a remark by a former Japanese official”.

“The BoJ will probably expand its stimulus during this summer, Takatoshi Ito, an academic with close ties to the central bank governor, told Reuters on Thursday, adding that weak first quarter growth data will give policymakers reason to ease further”.

“Despite the sharp pull-back yesterday, there is no change to our bullish USD view. Both target and stop-loss remain unchanged at 109.70 and 107.50 respectively”.