USD/JPY all eyes now on 110.00 – UOB

FX Strategists at UOB Group noted the pair’s outlook should shift to bullish on a close above the key 110.00 level.

Key Quotes

24-hour view: “While USD managed to move above 110.00 yesterday (high of 110.02), the anticipated ‘pop higher’ to 110.20 did not materialize. The pull-back from the high has resulted in a quick loss in momentum and from here, a sustained break above 110.00 seems unlikely, at least not for today. USD is more likely to consolidate and these higher levels and trade sideways, likely within a 109.60/110.05 range”.

Next 1-3 weeks: “We highlighted that the break of 109.30 has shifted to focus to 110.00. We indicated that 110.00 is of high importance and a break of this level would suggest that USD has likely made a significant low at 104.55 last month. Since then, the outlook for USD has improved further and from here, a NY close above 110.00 would indicate the start of a bullish phase (with an immediate target of 110.50 followed by 111.00). The prospect for such a scenario is not very high at this stage but would continue to improve as long as USD can hold above the 108.80 ‘key support’.