USD/JPY: Still room for an advance to 115.90 – UOB

In opinion of FX Strategists at UOB Group, USD/JPY could still test the 115.90 level in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘could advance further but 115.90 is unlikely to come into the picture’. While our view was not wrong as USD rose to 115.80, we did not expect the sharp pullback from the high. Upward pressure has eased and the current movement is likely part of a consolidation. In other words, USD is likely to trade sideways for today, expected to be within a range of 115.15/115.70.”

Next 1-3 weeks: “There is no change in our view from yesterday (03 Mar, spot at 115.55). As highlighted, there is room for USD to rise to 115.90. At this stage, a sustained advance above this level is unlikely. On the downside, a breach of 115.00 (no change in ‘strong support’ level) would indicate that the current mild upward pressure has eased. Looking ahead, the next resistance above 115.90 is at 116.30.”