USD/JPY now looks to 111.45 – UOB

The upside momentum in USD/JPY could now extend to the 111.45 level, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “After trading in a quiet manner for a few days, the sudden surge in USD to 111.11 came as a surprise. The rapid rise appears to be overdone but there is scope for USD to strengthen to 111.25 (next resistance is at 111.45). For today, a sustained advance above this level is unlikely. Support is at 110.90 followed by 110.70.”

Next 1-3 weeks: “On Tuesday (29 Jun, spot at 110.65), we highlighted that USD ‘could consolidate and trade between 110.05 and 111.10 for a period of time’. Yesterday (30 Jun), we noted that ‘looking ahead, the chance for USD to break above 111.10 first appears to be higher’. However, we did not anticipate the sudden rush higher as USD surged to 111.11 during NY hours. Upward momentum has improved, albeit not by all that much. From here, as long as 110.55 (‘strong support’ level) is not breached, USD is likely to trade with an upward bias towards 111.45.”