USD/JPY keeps the constructive view so far – UOB

FX Strategists remain bullish on USD/JPY and expect the pair to move to the 110.70 region in the short-term.

Key Quotes

24-hour view: “Our expectation for USD to ‘edge higher towards 110.40’ did not materialize as it traded mostly sideways eking out a fresh high of 110.28. Momentum indicators are mostly ‘neutral’ and from here, USD is likely to trade sideways. Expected range for today, 110.00/110.35.”

Next 1-3 weeks: “USD closed at an 8-month high of 110.14 yesterday (16 Jan). While upward momentum remains positive, the price action lacks ‘urgency’. However, as highlighted in recent updates, there is scope for the current USD strength to extend towards the next resistance at 110.67. The lack of ‘impulsiveness’ suggests USD may struggle to move clearly above this level. On the downside, a breach of 109.45 would indicate the current USD strength has run its course.”