USD/JPY tough resistance lies at 112.10 – UOB

In opinion of FX Strategists at UOB Group, the pair’s upside should find a strong resistance above the 112.00 handle.

Key Quotes

“Expectation for sideway trading was wrong as USD surged strongly during NY session to hit a high of 111.60 (before extending its gain earlier this morning). Upward momentum has picked up strongly and further USD strength is expected. That said, the next level at 112.10 is a strong resistance and is unlikely to yield so easily (minor resistance at 111.95)”.

“While we held the view that the recent USD strength has room to extend higher to 111.70, the rapid pace of the rally was unexpected. The week-long neutral phase has shifted to bullish and from here, we are anticipating a break above 112.10 (minor peak in late-May) for a move to 112.80. Current level of 111.65 could be used as an entry level with stop-loss at 110.85”.

 

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Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.