USD/JPY stays focused on 110.90 – UOB

UOB Group’s FX Strategists see prospects for extra gains in USD/JPY on a breakout of the 110.90 level in the short-term horizon.

Key Quotes

24-hour view: “Our expectation for USD to ‘move to 110.70’ was incorrect as it dropped to 110.10 during early London hours before trading sideways for the rest of the sessions. The movement is viewed as part of a consolidation phase and USD is likely to trade sideways. Expected range for today, 110.05/110.50.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (26 Jul, spot at 110.55). As highlighted, upward momentum is beginning to improve but USD has close above 110.90 before a sustained advance can be expected. The prospect for USD to close above 110.90 is not high for now but would remain intact as long as USD does not move below 109.90 within these few days.”