USD/JPY risks a test of 114.00 – UOB

According to FX Strategists at UOB Group, USD/JPY could see the 114.00 area tested in the near term.

Key Quotes

“USD had a volatile day by surging initially to hit 116.85 before plunging to crack the recent 115.00 low to hit 114.23. The subsequent recovery has resulted in a mixed outlook for today even though the immediate bias is tilted to the downside”.

“As noted yesterday, a break below 115.00/05 would indicate that a deeper probe towards 114.00 has started. At this stage, we expect this level to offer solid support. That said, the downward pressure would continue to increase unless USD can reclaim 116.40 within the next few days”.