USD/JPY now looks to the 108.50 level – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group still see USD/JPY attempting a move to the 108.50 in the next weeks.

Key Quotes

24-hour view: “Yesterday, we expected USD to ‘rise to 108.15 first before a pullback can be expected’. Our expectation did not materialize as USD drifted lower from a high of 107.98. Momentum indicators have turned ‘neutral’ and for today, USD is expected to consolidate and trade between 107.35 and 108.00.”

Next 1-3 weeks: “After trading in a quiet manner for about a week, USD was jolted awake as it surged past the major 107.80 resistance (high of 108.08) before closing at 107.68 in NY (+0.33%). While we would prefer a daily closing above 107.80, the rapid pick-up in momentum suggests USD could head higher towards 108.50 in the coming days. At this stage, the prospect for a move to the next resistance at 108.90 is slim. Overall, the outlook for USD is positive as long as the ‘strong support’ at 107.15 is not taken out.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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