USD/JPY still aims for 114.54 in the near term – UOB

The pair’s stance remains neutral while a test of 114.54 stays well on the cards, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded between 113.65 and 114.20 yesterday, wider than our expected 113.60/114.05 consolidation range. Downward pressure has picked up and the immediate bias is tilted to the downside. That said, any decline is likely limited to 113.40 (next support at 113.20 is likely out of reach). Resistance is at 114.00 followed by the 114.20 high. The latter level is likely strong enough to cap any intraday recovery”.

Next 1-3 weeks: “Despite overall positive indications, USD has not been able to make much headway above 114.00 (USD briefly touched 114.20 yesterday before easing off quickly). For now, we continue to see chance for USD to visit last month’s top at 114.54 but a break of the 113.20 ‘key support’ would indicate that a short-term top is in place”.