USD/JPY still targets 113.80 – UOB

According to FX Strategists at UOB Group, the pair keeps the bullish perspective and could still target the 113.80 area.

Key Quotes

24-hour view: “We highlighted yesterday that any up-move is “expected to struggle to overcome 113.25”. USD touched a high of 113.19 before succumbing to selling pressure that lead to a sharp drop to an overnight low of 112.24. The decline appears to be running ahead of itself and while a dip below the overnight low is not ruled out, the next support at 111.90 is unlikely to be challenged. On the upside, only a move back above 112.90 would indicate that the immediate downward pressure has eased (minor resistance at 112.75)”.

Next 1-3 weeks: “We just turned bullish USD yesterday (28 Sep) and there is no change to the view. The target and stop-loss levels remain unchanged at 113.80 and 111.90 respectively. Positioning wise, the suggested entry level of 112.35/40 was met as USD dipped to an overnight low of 112.19”.