UOB Group’s FX Strategists noted USD/JPY is seen accelerating gains once 116.30 is cleared.

Key Quotes

24-hour view: “Yesterday, we held the view that USD ‘could advance further but is unlikely to challenge the major resistance at 116.30’. Our expectations did not materialize as USD rose to 115.93 before closing at 115.82. Upward momentum still appears to be on the firm side and we see chance for USD to advance. That said, any advance is still unlikely to challenge the major resistance at 116.30. Support is at 115.70 followed by 115.50.”

Next 1-3 weeks: “Two days ago (08 Mar, spot at 115.45), we highlighted that the outlook is mixed and USD could trade in a choppy manner and within a relatively broad range of 114.40/116.30. There is no change in our view even though shorter-term upward momentum is beginning to build. That said, USD has to break the major resistance at 116.30 before a sustained advance is likely.”