USD/JPY points to further gains in the upper-111.00s – UOB

Analysts at UOB Group remain bullish on USD/JPY, with a target around the 111.85/90 band in the near term.

Key Quotes

“While the 111.50 resistance capped the rebound in USD as expected (high of 111.34), the subsequent sharp drop from the top was unexpected”.

“The down-move appears to have scope to extend lower but a break below the key 110.00 support is not expected. Overall, this pair is expected to remain under pressure unless it can move and stay above 111.00”.

“We just shifted to bullish USD stance yesterday and there is no change to the view. Immediate target is at 111.85/90 and stop-loss at 110.00”.