USD/JPY bearish below 110.00 – UOB

The outlook on USD/JPY should shift to bearish on a daily close below 110.00, noted FX Strategists at UOB Group.

Key Quotes

“The target indicated at 111.80 was not met as USD plummeted from a high of 111.71. The decline appears incomplete and extension towards the major support at 110.00 seems likely”.

“While the sharp decline in USD has shifted the immediate pressure to the downside, the internal price action is not convincing and we prefer to wait for a NY closing below 110.00 before shifting to a bearish stance. The prospect for such a move seems quite higher and would continue to improve as long as the short-term key resistance at 111.25 is intact”.