USD/JPY scope for a test of 114.35 – UOB

FX Strategists at UOB Group stay bullish on the pair and allow a potential visit to 114.35 in the next weeks.

Key Quotes

“The bullish phase in USD is entering its third week and the strong daily closing above 113.55 last Friday suggests that there is scope for a break above 114.35, the high back in May”.

“We indicated last Thursday that in order for USD to maintain its bullish impetus, it has to ‘move and stay above 113.55’ and now that the condition is met, the odds for further USD strength appear to be quite high”.

“From here, a break above 114.35 could lead to acceleration higher as the next significant resistance is much further up at 115.50 (high in March). We have suggested those who are long USD from 111.65 to exit half of their position at 112.75 previously. Those with remaining long should utilize 113.00 as a stop-loss (level adjusted higher from 112.40 previously)”.