USD/JPY bull run could extend to 114.50 – UOB

FX Strategists at UOB Group see the pair’s upside could reach the 114.30 area in the next 1-3 week.

Key Quotes

“The recent short-term downward pressure shifted quickly to the upside as USD surged above the strong 112.90 resistance”.

“The price action is constructive for USD but at this stage, we are not convinced that the present strength could be sustained”.

“That said, for the next few days, the current rebound from the 111.55/60 low seen earlier this week appears to have ample momentum to extend further to 114.50 (where a clear break would greatly increase the odds for a move towards the 115.35/40 high seen in late January). The current positive outlook would remain intact as long as 112.60 is not taken out”.