UOB Group forex strategists now look at the pair USD/JPY accelerating gains after a break above 115.80 on the short-term horizon.
Key comments
24 hour view: “Yesterday we highlighted that ‘despite the advance, momentum to the upside has not improved as much and USD/JPY is unlikely to go much further’ and we expected USD/JPY ‘to move sideways between 115.25 and 115.70’. Our view was not wrong despite USD/JPY moving within a tighter range than expected (115.30/115.67) For today, further sideways movement would not be surprising, but the slightly firm underlying tone suggests a range highest between 115.40/115.80.”
Next 1-3 weeks: “Not much to add to our update from yesterday (Feb 9, USD/JPY at 115.45). As highlighted, while the momentum to the upside has improved a bit, USD/JPY has to break 115.80 before it breaks.” a sustained advance can be expected.The probability of a break of 115.80 is not high for now, but it would remain intact as long as 115.00 is not breached (‘strong support’ was yesterday at 114.80).Looking ahead, next resistance above from 115.80 it is at 116.10, followed by 116.35.
Source: Fx Street
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