USD/JPY favours a test of 104.70 – UOB

In view of the research team at UOB Group, USD/JPY is poised to test the 104.70 area in the next weeks.

Key Quotes

“The revised 104.00 target was exceeded as USD rose to touch a high of 104.31 last Friday”.

“The rally that started last Monday is clearly over-extended now and those who are long should look to book partial profit at current level of 103.95”.

“However, the outlook for USD is deemed as bullish until the trailing stop-loss is taken out (currently at 102.60, adjusted higher from 102.00)”.

“On the upside, the next level to focus on is at 104.70 even though the odds for further extension to this level are not very high”.