USD/JPY focus remains on the downside – UOB

According to the research team at UOB Group, USD/JPY remains on track to test yearly lows in the mid-105.00s in the near term.

Key Quotes

“The immediate target of 106.00 that was first highlighted last Monday was exceeded yesterday as USD dropped to low of 105.72”.

“While downward momentum is not as impulsive as preferred, the outlook in the coming days is still clearly bearish and the next level to focus on is at the year-to-date low of 105.50/55 seen in early May”.

“A break below this level would open up the way for further decline towards the major support zone of 105.00/105.20. Stop-loss is adjusted lower to 107.20 from 107.50 even though 106.80 is already a strong resistance”.