USD/JPY still points to extra gains – UOB

USD/JPY still targets the 110.00 region in the short-term horizon, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected USD to ‘trade sideways between 109.10 and 109.60’. USD subsequently traded within a narrower range than expected (109.13/109.47). Momentum indicators are still mostly neutral and USD could continue to trade sideways for today, likely between 109.10 and 109.50.”

Next 1-3 weeks: “Our narrative from Tuesday (04 May, spot at 109.10) still stands. We continue to hold the view that there is scope for the current USD strength to extend to 109.95. That said, the prospect for such a move is not high for now. On the downside, a break of 108.55 (no change in ‘strong support’ level) would indicate that the positive phase that started late last week has ended.”