USD/JPY still targets 112.80 – UOB

FX Strategists at UOB Group expect the pair to advance to the 112.80 region in the next weeks.

Key Quotes

“The strong rally in USD is accompanied by strong upward momentum and appears incomplete. Further up-move is expected but 112.10 is a strong resistance and may not be easy to break. That said, a break of this level could lead to a rapid rise to 112.50. Support is at 111.55 but only a move back below 111.35 would indicate that a temporary top is in place”.

“The bullish phase that started last Tuesday, 20 Jun is still intact. The price action since then has been rather lackluster but the strong closing in NY yesterday bodes well for our view. To put it another way, we continue to anticipate a break above 112.10 for a move to 112.80. Stop-loss remains unchanged at 110.85 (to adjust higher only if above 112.10)”.