There is scope for USD/JPY to advance further and revisit the 115.90 zone in the next weeks, commented FX Strategists at UOB Group.
Key Quotes
24-hour view: “The rapid rise in USD to 115.68 yesterday came as a surprise (we were expecting USD to consolidate). Upward momentum is relatively strong and USD could advance further. That said, 115.90 is unlikely to come into the picture. Support is at 115.35 followed by 115.20.”
Next 1-3 weeks: “Yesterday (02 Mar, spot at 115.00), we highlighted that the outlook for USD still appears to be neutral and we expected it to trade within a range of 114.40/115.60. USD subsequently rose to a high of 115.68. While upward momentum has not improved by much, there is room for USD to rise to 115.90. At this stage, a sustained advance above this level is unlikely. On the downside, a breach of 115.00 (‘strong support’ level) would indicate that the current mild upward pressure has eased. Looking ahead, the next resistance above 115.90 is at 116.30.”