USD/JPY bullish above 115.60 – UOB

In opinion of FX Strategists at UOB Group, the outlook on USD/JPY could shift to bullish on a close above 115.60.

Key Quotes

“The anticipated USD strength exceeded our expectation by taking out the major 114.95/00 resistance (high of 115.19 at the time of writing). Upward momentum has picked up strongly and from here, further up-move towards 115.35/40 is expected. The next resistance at 115.60 is another major level and is unlikely to yield so easily”.

“The clear break above 114.95 yesterday serves an early indication that USD is about to enter a bullish phase. Upward momentum continues to improve at a rapid pace and from here, the immediate pressure is for a move towards the key resistance at 115.60. A clear break above this level would indicate that a move to 116.85 has started. All in, this pair is expected to stay underpinned with 114.15 acting as a key support. On a shorter-term note, 114.50 is already a strong level”.