USD/JPY now targets 113.15 near term – UOB

FX Strategists at UOB Group stay bullish on the pair, while levels above the 113.00 handle are now back on the radar.

Key Quotes

“We suggested exiting half of long positions at 112.75 two days ago as we held the view that the major 112.80 resistance may not yield so easily. USD surged to a high of 112.92 yesterday but the rally was quickly reversed”.

“Despite the sharp pullback from the high, the bullish phase that started last Tuesday is still intact. That said, upward momentum has clearly been dented but only a move back below 111.30 would indicate that the bullish phase has ended. The next target is at 113.15 even though the 112.92 top is expected to offer solid resistance in the next few days”.