USD/JPY keeps the bearish view, 105.00 eyed – UOB

The pair’s bearish stance remains intact so far, while a test of 105.00 remains on the cards, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded sideways as expected albeit at a narrower range than anticipated. The daily closing is on the strong side and there is scope for a move above the overnight high of 106.72 even though a sustained move 107.00 seems unlikely (next resistance is at 107.30). Support is at 106.40 followed by 106.10”.

Next 1-3 weeks: “While the recovery from last Friday’s 105.52 low was more resilient than expected, it is too soon to expect an end to the current bearish phase. Only a move back above 107.30 would indicate that a short-term low is in place. Until there, despite being severely oversold, there is still room for the current decline in USD to extend lower towards the next major support at 105.00”.