USD/JPY remains focused on 114.54 – UOB

FX Strategists at UOB Group remain neutral on spot and see it testing the mid-114.00s in the next weeks.

Key Quotes

24-hour view: “We expected USD to “test 114.25 first easing off” last Friday but it only managed to touch a high of 114.08. Upward pressure has eased with the pull-back from the high and the current movement is viewed as part of a consolidation phase. In other words, we expect USD to trade sideways for today, likely between 113.60 and 114.05”.

Next 1-3 weeks: “As highlighted, a break of 114.00 would shift the focus to the October’s peak of 114.54. At this stage, the odds for a sustained move above 114.54 are not high. All in, we continue to expect USD stay underpinned in the coming days as long as the 113.20 ‘key support’ is intact (level previously at 112.90)”.