USD/JPY still bearish, eyes on 109.50 – UOB

In opinion of FX Strategists at UOB Group, the pair’s outlook stays bearish, aiming for a test of 109.50 in the next 1-3 weeks.

Key Quotes

“We indicated yesterday that “the current decline is over-extended and any extension lower is likely limited to a ‘test’ 110.00/05”. USD dipped below 110.00/05 (low of 109.91) but the down-move was quickly reversed. The recovery appears to have scope to extend higher towards 110.75 (next resistance at 111.00). Support is at 110.15 followed the 109.91 low”.

“The suggested entry level at 110.55/60 was met as USD rebounded to an overnight high of 110.58. For now, there is no change to both the immediate bearish target of 109.50 and stop-loss at 111.20”.