USD/JPY: Still room for a move to 109.95 – UOB

The upside momentum in USD/JPY could extend to the vicinity of the key 110.00 mark in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected USD to “trade sideways between 108.80 and 109.40”. USD subsequently rose to 109.48, dropped to 109.01 during London hours before trading sideways for the rest of the session. The price actions offer no fresh clues and USD could trade sideways today, likely between 109.10 and 109.60.”

Next 1-3 weeks: “Our narrative from yesterday (04 May, spot at 109.10) still stands. We continue to hold the view that there is scope for the current USD strength to extend to 109.95. That said, the prospect for such a move is not high for now. On the downside, a break of 108.55 (no change in ‘strong support’ level) would indicate that the positive phase that started late last week has ended.”