USD/JPY is considered advancing to the 106.00 region in the subsequent weeks, referred to UOB Group’s FX Strategists.
24-hour view: “We highlighted ultimate Friday that ‘there is room for USD prolong its positive aspects however the most important resistance at 106.00 is not likely to come into the picture’. We added, ‘105.80 is already pretty a robust level’. Our view was once now not incorrect as USD rose to 105.76 earlier than easing off. The contemporary motion is seen as section of a consolidation section and USD is possibly to exchange between 105.25 and 105.75 for today.”
Next 1-3 weeks: “We have predicted USD to give a boost to given that final week. Our contemporary narrative was once from Tuesday (02 Feb, spot at 104.85) the place we highlighted that ‘upward momentum has elevated barely and whilst the outlook for USD is nonetheless positive, the predominant resistance at 105.40 may also now not come into the photograph so soon’. In that sense, we did no longer pretty assume the surprising surge in USD the day gone by (04 Feb) that despatched it hovering to 105.56. Further USD power seems in all likelihood and the subsequent stage to center of attention on is at 106.00. The effective outlook is deemed intact as lengthy as USD does no longer cross under 104.80 (‘strong support’ stage in the past at 104.50).”