USD/JPY upside could struggle near 113.25 – UOB

The up move in spot faces strong resistance in the 113.25 level, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded mostly sideways and did not threaten the major 113.25 resistance. While the undertone has improved somewhat, any upmove is still expected to struggle to move above 113.25 (minor resistance is at 113.00). Support is at 112.55 followed by 112.30”.

Next 1-3 weeks: “There is not much to add as USD continues to hold below the key 113.25 resistance. As highlighted in recent updates, upward momentum has started to wane and the odds for further USD strength towards 113.80 are not high. That said, only a move back below 112.20 (stop-loss level unchanged) would indicate that a short-term top is in place. Positioning wise, those who are long from 112.40 would have exited half of their position at 112.75”.