USD/JPY remains poised for extra gains near term – UOB

Pablo Piovano FXStreet

Further upside in USD/JPY looks likely and with the immediate target at 135.75, note UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: “Yesterday, we held the view that USD ‘could test the 135.15 level before the risk of a more sustained pullback increases’. However, USD pulled back directly to a low of 134.00. The pullback in USD could extend but a break of the strong support level at 133.50 is unlikely. On the upside, a breach of 134.75 (minor resistance is at 134.40) would indicate that USD is not weakening further.”

Next 1-3 weeks: “Our update from yesterday (20 Apr, spot at 134.65) still stands. As highlighted, the bias is still towards a higher USD. The next level to aim for is a 135.75. Overall, only a break of 133.50 (no change in ‘strong support’ level) would indicate that the USD strength that started on Monday (17 Apr, spot at 133.80) has run its course.”

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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