USD/JPY ought to possibly shift its activity to the one zero 5 region in the subsequent weeks, noted FX Strategists at UOB Group.
24-hour view: ” We highlighted the day earlier than nowadays USD ‘could smash the sturdy resistance at 104.25 alternatively the predominant stage at 104.60 is in all possibility out of reach’. Our view used to be as soon as no longer unsuitable as USD rose to 104.39 beforehand than easing off. While USD looks to be struggling to maintain a foothold at these levels, it is too early to depend on a sustained pullback. For today, there is room for USD to aspect higher on the other hand any enhance is predicted to face steady resistance at 104.60. Support is at 104.00 discovered with the aid of capability of 103.85.”
Next 1-3 weeks: “We highlighted closing Friday (08 Jan, spot at 103.80) that USD is estimated to alternate on a enterprise footing and ‘a wreck of 104.25 ought to lead to a rapid upward jab to in the course of 104.60’. USD rose to a immoderate of 104.39 the day earlier than these days (11 Jan). While shorter-term momentum appears to be overstretched, the common outlook is nonetheless outstanding and a spoil of 104.60 would shift the focal factor to 105.00. All in, USD is predicted to alternate on a agency footing as prolonged as it does now now not pass underneath 103.50 (‘strong support’ diploma used to be as soon as in the previous at 103.00).”