USD/JPY faces some consolidation near term – UOB

FX Strategists at UOB Group expect USD/JPY to initiate a consolidation phase following recent highs below the 114.00 handle.

Key Quotes

“The sudden and sharp drop in USD yesterday took out the key support near 111.45 and indicates that the bullish phase that started earlier this month has ended”.

“The high of 113.89 seen last Friday is viewed a short-term top and the current movement is likely the early stages of a correction/consolidation phase”.

“The downside appears to be more vulnerable at this stage but any decline is expected to find solid support near 110.80, 110.25. The high of 113.10 seen yesterday is acting as a very strong resistance followed by 113.89”.