USD/JPY pullbacks likely to be shallow – UOB

Analysts at UOB Group see USD/JPY advancing further north of the 101.00 handle in the next 1-3 weeks.

Key Quotes

“The rebound from the overnight low of 100.42 has just edged above 101.00 at the time of writing. Further up-move would not be surprising but at this stage, a move beyond the major 101.50 resistance seems unlikely”.

“As highlighted yesterday, a prolonged consolidation above 100.00/05 would decrease the odds for further USD weakness. The short-term USD strength is more resilient than expected and unless USD can move and stay below 100.40 by end of the day, a break above the stop-loss of 101.50 would not be surprising (indicating the start of a broader consolidation phase)”.