USD/JPY: Scope for a move to 110.30 near-term – UOB

FX Strategists at UOB Group believe USD/JPY could still attempt a test of the 110.30 region in the next weeks.

Key Quotes

24-hour view: “Instead of trading sideways, USD popped to a high of 110.13 before easing off. For today, last month’s peak at 110.28 is unlikely to come into the picture. USD could ease from here but nay weakness is likely limited to 109.65. Resistance is at 110.10 followed by 110.30.”

Next 1-3 weeks: “USD edged above 110.00 yesterday and touched 110.13. While upward momentum has not improved by much, the firm underlying tone suggests USD could edge upwards and test the top of our expected 109.20/110.30 sideway-trading range (narrowed from 109.00/110.30). As highlighted on Tuesday (11 Feb, spot at 109.75), the top of the range at 110.30 appears to be more vulnerable but USD has to register a NY closing above this level or the next resistance at 110.65 is unlikely to come into the picture. Overall, the current mild upward pressure could improve further as long as USD does not move below the bottom of the expected range at 109.30.”