The USD/JPY is likely to trade between 110.00 to 111.15 in the coming weeks, according to UOB Group FX Strategists.
Observation for 24 hours: “While we expected the dollar to strengthen yesterday, we thought a “clear break of 110.55″ was improbable. The ensuing surge of the US dollar outperformed our expectations, rising to 110.64. Despite the rather rapid rise, the upward momentum has not significantly improved. However, USD still has room to touch 110.75 before a correction may be predicted. The main resistance level of 111.10 is unlikely to be breached. A breach of 110.30 on the downside would signal that the current rising pressure has weakened.”
Within the next 1-3 weeks: “Since the middle of last week, we’ve been expecting the dollar to fall. We noted yesterday that ‘downward momentum is beginning to diminish and a break of 110.55 would signal that USD is not ready to move below 109.50 just yet’ after USD rebounded strongly from 109.52. The dollar has risen to an overnight high of 110.64, and the downward impetus has faded. USD is likely to trade between 110.00 and 111.15 for some time after this.”/n
