USD/JPY neutral, still targets 114.95 – UOB

USD/JPY sticks to the neutral bias in the near term, while a test of the 114.95 level still remains on the radar, suggested FX Strategists at UOB Group.

Key Quotes

“USD exceeded the target indicated at 114.45/50 yesterday with a high of 114.59. While upward momentum is not impulsive, the current USD strength appears to have scope to extend higher even though the major 114.95 resistance is unlikely to yield so easily (the 114.59 high is already a strong resistance)”.

“There is not much to add; as noted yesterday, we expect the current USD rebound to extend to 114.95. Overnight high has been 114.59 and the strong undertone is still clearly intact. Only a move back 113.35 would indicate that a short-term top is in place. On a shorter-term note, 113.75 is already a strong support”.