USD/JPY attention to 101.60 – UOB

In view of analysts at UOB Group, a return to 101.60 would indicate that downside pressure has eased in USD/JPY.

Key Quotes

“USD tried but failed to break below the 100.00 support (low of 100.02). The sharp rebound amidst oversold conditions suggests that USD is likely trying to form a short-term base for a stronger recovery”.

“The downward pressure is still on the downside and as indicated yesterday, a retest of the post-Brexit low of 99.05/10 would not be surprising. That said, downward momentum is patchy at best and a sustained break below 99.05/10 seems unlikely. Only move back above 101.60 would indicate that the downward pressure has eased”.