USD/JPY EXPECTED TO TEST THE 109.30 area
USD/JPY continues the upside bias unchanged and FX Strategists at UOB Group trust it can attain the 109.30 area the subsequent weeks.
USD to increase decrease became wrong because it surged to 109.21 earlier than easing off. Despite the pullback, the underlying tone is still company and there may be danger for USD to check the principal resistance at 109.30.
For today, a clean destroy of this degree is unlikely. The subsequent resistance at 109.60 isn't predicted to return back into the picture. Support is at 108.70 observed by 108.50.
Next 1-3 weeks:
Two days ago (28 Apr, spot at 108.80), we became wonderful on USD and predicted it to ‘exchange with an upward bias toward 109.30’.
USD rose to 109.21 yesterday (29 Apr) and there may be no alternate in our view. Looking ahead, a clean destroy of 109.30 might recommend USD ought to fortify in addition to 109.60. On the downside, a breach of 108.20 (‘robust support’ degree formerly at 108.00) might imply that the wonderful section has ended.