USD/JPY is still expected to edge higher in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that USD could rise to 115.50 but a clear break of this level is unlikely. USD subsequently dipped to 114.94 before bouncing back up to 115.36. While upward momentum has not improved by much, USD could edge above the major resistance at 115.50. For today, the next resistance at 115.80 is unlikely to come under threat. Support is at 115.20 followed by 115.00.”

Next 1-3 weeks: “Our view from yesterday (03 Jan, spot at 115.20) still stands. As highlighted, there is room for USD to edge above Nov’s peak near 115.50. Barring a surge in momentum, a sustained rise above this level appears unlikely (next resistance is at 115.80). On the downside, a breach of 114.80 (‘strong support’ level was at 114.60 yesterday) would indicate that the current upward pressure has eased.”