USD/JPY strong resistance at 102.80 – UOB

Further gains in USD/JPY could be limited around the 102.80 area, suggested analysts at UOB Group.

Key Quotes

“The target indicated at 102.30 yesterday was exceeded with a high of 102.39. The rapid pull-back from the top suggests that short-term upward pressure has eased and the current movement is likely part of a correction/consolidation phase”.

“As highlighted yesterday, while the outlook for USD has shifted to bullish, it is likely that we have seen a chunk of the USD strength last Friday and from there, the upside potential appears to be limited to 102.80. Overall, only a move back below the stop-loss at 101.00 would indicate that a short term top is in place”.