Further upside momentum could lift USD/JPY back to the 124.30 region in the next weeks, commented FX Strategists at UOB Group Quek Ser Leang and Lee Sue Ann.

Key Quotes

24-hour view: “USD traded sideways between 123.46 and 124.00 yesterday, narrower than our expected range of 123.10/123.95. Further sideway trading appears likely even though the firmed underlying tone suggests a higher range of 123.50/124.30.”

 Next 1-3 weeks: “There is no change in our view from Wednesday (06 Apr, spot at 123.85). As highlighted, upward momentum is building and USD is likely to trade with an upward bias towards 124.30, possibly 124.60. On the downside, a breach of 123.00 (‘strong support’ level was at 122.40 yesterday) would indicate that the build-up in momentum has fizzled out.”