USD/JPY oversold, could test 105.00 – UOB

Pablo Piovano FXStreet

The pair’s condition remains oversold for the time being and a test of the 105.00 still stays on the cards, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD rebounded strongly from a fresh low of 105.52 last Friday. Downward pressure has eased and USD has likely moved into a consolidation phase and is likely to trade sideways for now. Expected range for today; 105.75/106.70”.

Next 1-3 weeks: “The outlook for USD shifted to bearish last week when it broke below the key 108.00 support. The decline since then has been impulsive as USD touched a low of 105.52 on Friday. The down-move is severely oversold but there is room for further extension to 105.00. Only a move back above 107.30 would indicate that a short-term low is in place”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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