USD/JPY now looks to test 115.80 – UOB

Further gains in USD/JPY are likely once 115.80 is surpassed, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected USD to strengthen but we were of the view that ‘any advance in USD is unlikely to break 115.50’. The anticipated USD strength exceeded our expectations as USD rose to 115.62. Despite the advance, upward momentum has not improved by all that much and USD is unlikely to advance much further. For today, USD is more likely to trade sideways between 115.25 and 115.70.”

Next 1-3 weeks: “We highlighted on Monday (07 Feb, spot at 115.20) that the outlook for USD is mixed and we expected it to trade between 114.55 and 115.80. USD rose to a high of 115.62 and upward momentum has improved somewhat. However, USD has to break 115.80 before a sustained advance can be expected. The chance of USD breaking 115.80 is not high for now but it would remain intact as long as the ‘strong support’ level at 114.80 is not breached.”