USD/JPY still targets a breakout of 112.00 – UOB

FX Strategists at UOB Group remain bullish on the pair, eyeing a break above the key 112.00 handle in the next weeks.

Key Quotes

“USD dipped below 111.00 to touch a low of 110.92 but the down-move was not sustained. This pair is likely still caught in a consolidation phase and range trading is expected from here, likely between 110.90 and 111.70. 111.70 is quite a critical resistance and a clear break of this level could lead to a rapid rise to 112.10”.

“USD touched a low of 110.92 yesterday, several pips above the stop-loss for our bullish view at 110.85. While upward momentum has been dented, the overall technical outlook still appears positive and we continue to anticipate a move above the major 112.10 resistance. However, this has to happen soon as a prolonged consolidation at these levels would lead to a rapid loss in momentum”.