USD/JPY: Further upside remains in the pipeline -UOB

Extra gains in USD/JPY need to surpass the 136.00 level in the short term, according to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Our view for ‘the rapid rise in USD to extend’ did not materialize as it eased off to 134.52 before rebounding to end the day little changed at 135.08 (+0.09%). The price actions appear to be part of consolidation phase and USD is likely to trade sideways for today, expected to be within a range of 134.60/135.50.”

Next 1-3 weeks: “There is no change in our view from yesterday (20 Jun, spot at 135.20). As highlighted, the risk appears to be shifting back to the upside but USD has to close above 136.00 before further sustained advance is likely. The chance for USD to close above 136.00 would remain intact as long as it does not move below 133.90 (‘strong support’ was at 133.50 yesterday) within these few days.”