USD/JPY bullish, now targets 115.60 – UOB

USD/JPY keeps its bullish stance and aims for a test of 115.60 in the near term, according to FX Strategists at UOB Group.

Key Quotes

“The massive rally is clearly overbought but in view of the impulsive momentum, it is premature to expect a sustained pull-back. USD could gravitate towards 115.00 but this is rather strong level and may not be easy to crack”.

“The sudden surge in USD yesterday that took out the recent high of 113.89 was unexpected. The very strong daily closing suggests that the current movement is the start of a fresh bullish phase. From a shorter-term perspective, the up-move is severely over-extended but there appears to be room for further gains towards 115.60 (61.8% retracement of the 1- year decline from 125.85, June 2015 to 99.08, June 2016). In order to maintain the current overbought momentum, any pull-back should not move back below 113.20”.