USD/JPY further downside unlikely – UOB

In opinion of the research team at UOB Group, USD/JPY’s downside momentum could be running out of steam in the near-term.

Key Quotes

“The bearish USD phase that started more than 2 weeks ago appears to be close to ending. Downward momentum has waned considerably over the last few days and this coupled with oversold indicators suggests diminished odds for further USD weakness”.

“That said, as long as the stop-loss at 105.10 is intact, another attempt towards the recent 103.50/55 low cannot be ruled out but a sustained break below this level would be surprising”.

“Those who are holding short positions should look to book at least partial profit on any approach to 103.50/55. The next support below 103.50/55 is at 103.05/10 which is another major support”.