USD/JPY further decline appears unlikely – UOB

According to the research team at UOB Group, USD/JPY’s downside momentum seems to have run out of impetus.

Key Quotes

“USD opened with a gap higher early this morning and surged to high of 100.89. While the undertone is positive, the current USD strength does not appear to be sustainable. That said, a retest of 100.85/90 would not be surprising but the strong 101.25/30 resistance is unlikely to be challenged, at least not for today”.

“While the stop-loss for the current bearish USD view is still intact at 101.20, the strong rebound last Friday and the strongly opening this morning clearly indicates a lower odds for further USD weakness. Unless USD can move and stay below 100.00 within these couple of days, a break above 101.20 would not be surprising”.