USD/JPY is not ruling out a climb to 110.00 in the coming weeks, according to UOB Group FX Strategists.
Observation for 24 hours: “‘Despite the relatively strong decrease, downward momentum has not improved all that much, but there is opportunity for USD to move lower to 110.30,’ we said yesterday. Our prediction did not come true, as the USD bounced back after touching 110.38 and then traded sideways. The underlying tone is still a little light, and we see a probability for USD to fall further, although a clean breach of 110.30 is doubtful (next support is at 110.05). The resistance level is 110.80, which is followed by 111.00.”
Within the next 1-3 weeks: “We haven’t changed our minds since yesterday (07 Jul, spot at 110.55). As previously said, the US dollar is under slight downward pressure and might fall as low as 110.05. At this point, the chances of a clear breach of 110.05 are not favorable. A breakout of 111.15 on the upside would signal that the current slight negative pressure has subsided.”/n
