USD/JPY still bullish, targets 107.45 – UOB

According to strategists at UOB Group, the outlook on USD/JPY remains bullish and targets the 107.50 area.

Key Quotes

“The key support indicated at 104.70 held as USD staged a strong rally that surpassed the 106.50/55 resistance to reach a high of 106.94. The strong daily closing bodes well for further USD strength in the coming days even though on an intraday basis, any up-move is expected to face stiff resistance at 107.45/50, the high seen in July. On the downside, support is at 106.20 but only a move back below 105.70 would indicate that a temporary top is in place”.

“We turned bullish yesterday and the immediate target of 106.50 was quickly exceeded (overnight high of 106.94). The focus from here is at the July’s high of 107.45/50”.