USD/JPY clings to the bullish perspective near term – UOB

In view of FX Strategists at UOB Group, spot keeps its bullish outlook unchanged for the time being.

Key Quotes

24-hour view: “We highlighted yesterday that “a retest of 111.30/35 would not be surprising but odds for a clear move beyond 111.65 are not high”. USD touched a high of 111.66 before settling just below the high. While upward momentum is beginning to show signs of tiring, it is too early to expect a significant pullback. Only a move back below 111.10 would indicate that a temporary top is in place. Until then, USD could grind higher even though the major level of 112.15/20 is not expected to come into the picture, at least not for today. However, a challenge of the minor resistance at 111.90 would not be surprising”.

Next 1-3 week: “We highlighted yesterday that despite the strong up-move, “upward momentum is not as impulsive as preferred and the next resistance at 111.65 may not be easy to crack”. USD touched an overnight high of 111.66 but has since eased off. We continue to hold the same as mentioned above but do not ruled out an intraday move above 111.65 (next resistance is at 112.20). All that said, the bullish phase that started last Wednesday (13 Sep, spot at 110.15) is deemed as intact until 110.40 is taken out (stop-loss adjusted higher from 110.00)”.