The current upside momentum could push USD/JPY to the 109.30 region in the next weeks, commented FX Strategists at UOB Group.
24-hour view: “We highlighted yesterday that ‘momentum remains strong and USD could strengthen further to 109.10’. We added, ‘overbought conditions suggest that the next resistance at 109.30 is likely out of reach’. USD subsequently rose to 109.07 but pulled back sharply during NY hours. The decline has scope to extend but any weakness is likely limited to a test 108.20. Resistance is at 108.65 followed by 108.90.”
Next 1-3 weeks: “Yesterday (28 Apr, spot at 108.80), we highlighted that USD ‘is expected to trade with an upward bias towards 109.30’. USD subsequently rose to 109.07 but fell sharply during NY hours. Upward momentum has been dented but only a break of 108.00 (no chance in ‘strong support’ level) would indicate USD is not ready to move towards 109.30.”
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