USD/JPY could re-visit 107.90 – UOB

The recovery in the pair could extend to the 107.90 region in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While USD traded mostly sideways last Friday, the undertone is positive and the immediate bias is tilted to the upside. That said, any up-move is expected to face stiff resistance near 106.70. For now, a move above last week’s 107.01 peak is not expected. Support is at 106.00 followed by 105.70”.

Next 1-3 weeks: “While we maintain a neutral view despite the sharp decline in USD last week, the sharp and rapid up-move for the past couple of days was not exactly expected. As highlighted on Tuesday (27 Mar, 105.45), the 104.55 low seen on Monday is likely a short-term low but instead of consolidating between 104.80/106.65 (as expected previously), USD appears to have room to extend its rebound towards 107.90. At this stage, we do not anticipate a sustained move above this level. On the downside, only a move back below 105.70 would indicate that the current upward pressure has eased”.