USD/JPY could advance to 108.60 – UOB

The pair’s upside momentum could extend towards the 108.60 region in the near term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected a higher USD last Friday but were of the view that “a clear break of 107.75 seems unlikely”. However, USD managed to break through this resistance and hit a high of 107.85. While upward momentum still appears to be ‘patchy’, a move above the next strong resistance at 107.90 seems likely. However, a move beyond 108.30 would come as a surprise. Support is at 107.50 followed by 107.30”.

Next 1-3 weeks: “USD is currently holding just below the top of our expected 106.20/107.90 consolidation range. The relatively strong daily closing on Friday has improved the outlook and while there is no change to the neutral outlook, there is scope for the current rebound to extend higher toward 108.60. At this stage, a sustained move above this level seems unlikely. On the downside, only a move below 107.00 would indicate that the current mild upward pressure has eased”.