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Flash: USD/JPY beyond 102.00. Where to next? – Scotiabank, UBS and Commerzbank

FXstreet.com (Edinburgh) - The greenback continues to appreciate against the Japanese yen on Wednesday, lifting the USD/JPY above the 102.00 handle (levels last seen in May) and according to the majority of analysts, leaving the door open for further gains.

According to Eric Theoret, Currency Strategist at Scotiabank, the short-term technicals remain bullish, with “momentum indicators are steady and suggestive of further gains. A break of Monday’s highs would likely provide for a rally above 102.00, beyond which lie the late May highs near 102.50”.

In addition, strategists at UBS keep the bullish bias on the pair, adding “As bullish conditions persist, there’s scope for further upside in the near-term to test the resistance at 103.74 and then 105.75. Support is at 100.78”.

In the same direction, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested, “The market is consolidating at the 101.54/60 July high and 78.6% Fibonacci retracement of the May-to-June decline and targets the 103.74 2013 high”.

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