USD/JPY could slip towards 103.50 – UOB

In view of the research team at UOB Group, USD/JPY could extend the leg lower to the mid-103.00s in the near term.

Key Quotes

“The strong rebound from the low of 103.98 suggests that USD weakness is stabilizing and is trying to form a shortterm base. However, it is too early to expect a sustained recovery. From here, allow for a dip to 104.35 but 103.90 is expected to hold for a rebound to 105.20”.

“As highlighted in the Chart of the Day yesterday, a clear break of 104.50 would indicate that the current pull-back in USD has room to extend further to 103.50 (low of 103.98 yesterday). At this stage, a sustained move below this level seems unlikely. Overall, USD is expected to say under pressure in the coming days unless it can reclaim the strong 106.20 resistance”.