The currency strategists of UOB Group noted that USD / JPY could now head towards the vicinity of the key 110.00 zone in the coming weeks.
24 hour perspective: “We highlighted last Friday that there is a possibility that the USD will test the main resistance at 109.30. We added that a clear breakout of this level was unlikely and the next resistance at 109.60 was not expected to enter the scene. Our opinion was not there. wrong as the USD rose to 109.36 before closing on a firm note at 109.27 (+ 0.33%). Bullish momentum remains strong and further advance would not be surprising even though overbought conditions could ‘cap’ any gain to a test of 109.60. A move towards the next major resistance at 109.95 would be a surprise. The support is at 109.00, but the strongest level is at 108.75 “.
Next 1-3 weeks: “We turned positive last Wednesday (April 28, pair at 108.80) where we indicated that the USD was expected to trade with a bullish bias towards 109.30. Our opinion was not wrong as the dollar rose to 109.36 on Friday. While the bullish momentum has not improved much, the upside bias remains intact. The next resistance is at 109.60 followed by a important level at 109.95. On the downside, a breakout of 108.55 (previously ‘strong support’ level at 108.20) would indicate that the positive phase is over. “
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