Upside bias towards 109.30 is seen in USD/JPY – UOB

According to FX Strategists at UOB Group, the upside momentum is expected to lift USD/JPY to the area above 109.00 the figure in the next weeks.

Key Quotes

24-hour view: “Expectation for USD to move higher did not materialize as it traded in a quiet manner after briefly touching a fresh high of 109.06. Upward momentum has eased quickly and the current price action is viewed as part of a consolidation phase. From here, USD is expected to trade sideways between 108.70 and 109.10”.

Next 1-3 weeks: “USD eked out a fresh high of 109.06 before easing off to end little changed at 108.87 (-0.06%). We continue to hold the same view from yesterday (29 Oct, spot at 109.00) wherein USD is expected to “trade with an upside towards 109.30”. As highlighted, the prospect for a sustained advance above this level is not that high but it would continue to increase as long as 108.35 (‘strong support’ level) is intact. Looking ahead, the next resistance above 109.30 is at 109.60 followed by 110.00”.