USD/JPY bullish, eyes on 104.30 – UOB

The research team at UOB Group has shifted its USD/JPY outlook to bullish from neutral, now initially targeting the 103.30 area.

Key Quotes

“The anticipated USD strength far exceeded our expectation as it surged to an overnight high of 102.96 (highest level since mid-September). While a move above the overnight high would not be surprising, the mid-September high of 103.35 is expected to offer solid resistance and this level is unlikely to yield so easily. On the downside, 102.30 is likely strong enough to hold any intraday pull-back”.

“We highlighted yesterday that a daily closing above 102.30 would shift the outlook for USD to bullish. The up-move was more aggressive than expected as USD surged strongly to a high of 102.96. While the rally appears to be running ahead of itself, further USD strength still seems likely and from here, the next level to aim for is at 103.35 followed by the early September high of 104.30”.