USD/JPY upside momentum losing ground – UOB

In view of FX Strategists at UOB Group, spot could struggle to appreciate further in the next 1-3 weeks.

Key Quotes

24-hour view: “USD dipped to a low of 112.33 before rebounding strongly. The recovery appears to have scope to extend higher but a clear break above 113.25 is not expected (minor resistance is at 113.00). Support is at 112.50 followed by the stronger level near 112.20”.

Next 1-3 weeks: “Despite overall bullish indications, USD has not been able to make much headway and has struggled to maintain a foothold above 113.00. Upward momentum has been dented and the odds for further extension to 113.80 have diminished. However, only a move below 112.20 (stop-loss level unchanged) would indicate that the bullish phase that started last Friday has ended. Positioning wise, those are long from 112.40 may like to exit half of their position at the current level of 112.75”.