USD/JPY Could Re-test 112.20 – UOB
According to the research team at UOB Group, the pair’s upside could initially target the 112.20 area in the near-term.
“The break above the key 110.65 resistance led to the strongest USD gain since October 2014 (when BOJ surprised the market by expanding its monetary stimulus measure)”.
“From here, the outlook is clearly bullish but the rapid and sharp rise is severely overbought especially from a short-term perspective and this could lead to a couple of days of consolidation first”.
“Looking ahead, further USD strength can be expected towards 112.20 and possibly 113.80. Strong support is at 110.60 but only a move back below 109.80 would indicate that the bullish phase has ended”.