USD/JPY aims for extra gains while above 111.35 – UOB

FX Strategists at UOB Group expects the pair’s upside momentum to remain supported while above 111.35.

Key Quotes

24-hour view: “The sudden acceleration higher in USD that hit an overnight high of 111.99 was clearly not expected. Upward momentum has improved by considerably and from here, a move above the August’s peak of 112.14 would not surprise at all. However, the next resistance at 112.60 could be just out of reach for today. On the downside, we expect 111.35 to be strong enough to hold any intraday pull-back (minor support is at 111.60)”.

Next 1-3 weeks: “While we indicated on Wednesday (12 Sep, spot at 111.60) that the “the probability for a test of last month’s 112.15 peak has increased”, the solid gain made by USD yesterday was not exactly expected (the +0.60% gain is the largest 1-day rise in 3 weeks). After the solid advance, a move above 112.15 would not be surprising but at this stage, it is unclear if any up-move can be sustained. However, as long as USD can hold above 111.35 within the next couple of days (‘key support’ previously at 110.85), the prospect for further USD strength to 112.60 would continue to improve”.

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 securities. 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 Forex 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.