USD/JPY waiting for a test of 99.50 – UOB

Analysts at UOB Group reiterated the oversold condition of USD/JPY, while it continues to target the mid-99.00s.

Key Quotes

“Expectation for 100.85 to cap USD rebound was wrong as it surged to high of 100.98 before dropping quickly to touch an overnight low of 100.17. The rapid swings has resulted in a mixed outlook and further choppy consolidation is expected for today, likely within a 100.05/101.00 range”.

“The strong 100.00/05 support continues to hold and downward momentum is waning after the sideway consolidation over the past few days. That said, as long as 101.50 is not taken out, another leg lower to 99.50 cannot be ruled out just yet even though the odds would continue to diminish with a prolonged consolidation above 100.00/05”.