USD/JPY a test of 103.50 remains on the cards – UOB

A visit to recent lows in the mid-103.00s still remains a possibility in USD/JPY, according to the research team at UOB Group.

Key Quotes

“USD traded in a relatively narrow range last Friday but this followed by a strong opening early this morning. A short-term low is likely in place and the current recovery appears to have scope to extend higher to 105.10”.

“While the stop-loss for the current bearish USD phase is still intact at 105.70, the sharp rebound from the low of 103.58 has diminished the odds for further USD weakness. That said, unless 105.70 is taken out, a more definitive test of the 103.50 support cannot be ruled out just yet. In view of the recent rapid and sharp drop, those who are shorts may like to take at least some partial profit at this level”.