USD/JPY could now be headed towards the 111.35 level, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “Yesterday, we held the view that ‘bias is on the upside but any advance in USD is unlikely to break the major resistance at 111.35’. However, USD dipped to 110.68 first before recovering. We still see room for USD to edge higher but in view of the lackluster momentum, a break of 111.35 would come as a surprise (111.10 is already quite a strong level). Support is at 110.75 followed by 110.60.”
Next 1-3 weeks: “There is no change in our view from yesterday (24 Jun, spot at 111.00). As highlighted, USD is likely to head higher to 111.35. At this stage, the prospect for the expected advance to extend to 111.70 is not high. Overall, the current positive outlook is deemed intact as long as USD does not move below 110.40 (no change in ‘strong support’ level).”
