USD/JPY neutral, scope to test 100.05 – UOB

USD/JPY could see another visit to the 100.05 level in the next 1-3 weeks, suggested analysts at UOB Group.

Key Quotes

“While USD extended its sharp decline as expected, the low of 101.18 fell way short of the 100.80 target. The rapid bounce from the low suggests that this pair is trying to from a short-term base for a period of consolidation”.

“The neutral phase that started yesterday is still intact. We continue to view the current movement as a corrective pullback that has scope to extend lower towards the major 100.05 support (this is a major support and a clear break below this level is not expected). Only a move back above 102.80 would indicate that the short-term downward pressure has eased”.