USD/JPY targets 104.30 ahead of 105.00 – UOB

USD/JPY keeps its bullish stance intact and now targets 104.30 ahead of 105.00, suggested analysts at UOB Group.

Key Quotes

“The underlying momentum for USD is more impulsive than expected as the break of the major 103.85 resistance led to a quick rise to a high of 104.15. The rally is extremely overbought now but in view of the sharp rally over the past few days, a significant pull-back is not expected. USD is more likely to consolidate its gains and trade sideways at these higher levels, likely within a 103.30/104.15 range”.

“The 104.30 target appears to be within striking distance and in the event of a clear break of this level, the next focus would be on 105.00. Overall, the bullish USD phase that started on Wednesday (05/10/16) is intact and the stop-loss is adjusted higher to 102.70 from 102.30”.