USD/JPY now targets 114.50 – UOB

FX Strategists keep the bullish stance on the pair and are now targeting the mid-114.00s in the next weeks.

Key Quotes

24-hour view: “USD extended its strong gains from last week and based on the strong upward momentum, further advance from here seems likely. That said, the July’s peak near 114.50 is a major resistance and is unlikely to break so easily. Support is at 113.60 followed by 113.20. The latter level is expected to be strong enough to hold any intraday pullback”.

Next 1-3 weeks: “The outlook for USD shifted to bullish late last week when it broke above 112.90. The rapid acceleration higher appears incomplete and from here, the focus has shifted to 114.50, the high back in July (next resistance is at 115.00). On the downside, only a move back below 112.90 would indicate that a short-term top is in place”.