USD/JPY still seen testing the 109.30 region – UOB

FX Strategists at UOB Group noted USD/JPY could still move higher to the 109.30 region in the next weeks.

Key Quotes

24-hour view: “Other than a brief spike to 109.28 overnight, nothing much has changed on the outlook for JPY. Our expectations of a consolidation phase remain intact and from here, USD is still expected to trade sideways between 108.70 and 109.10”.

Next 1-3 weeks: “USD eked out a fresh high of 109.06 before easing off to end little changed at 108.87 (-0.06%). We continue to hold the same view from yesterday (29 Oct, spot at 109.00) wherein USD is expected to “trade with an upside towards 109.30”. As highlighted, the prospect for a sustained advance above this level is not that high but it would continue to increase as long as 108.35 (‘strong support’ level) is intact. Looking ahead, the next resistance above 109.30 is at 109.60 followed by 110.00”.