USD/JPY sets sails to 111.00 near term – UOB
|The pair’s outlook remains neutral while a test of the 111.00 handle stays on the cards, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “After making strong gains on Tuesday, USD traded in a surprisingly muted manner yesterday, registering a relatively narrow range of 39 pips (between 110.01 and 110.40). While the outlook for USD appears to be supportive, upward momentum is patchy at best and any advance is expected to be slow and grinding. From here, barring a move back below 110.00, we expect USD to grind higher and test the 110.75 resistance. At this stage, a clear break above this level is not expected (next resistance is at 111.00)”.
Next 1-3 weeks: “We have held the same view since last Thursday (10 May, spot at 110.75) wherein the immediate upward pressure could lead to a test of the major 110.45/50 resistance. After trading sideways for several days, USD finally managed to move higher and hit an overnight high of 110.45. At this stage, the prospect for a sustained move above 110.45/50 is not high but until there is break of the ‘key support’ at 109.65, we could not rule out further USD strength to 111.00”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.