USD/JPY could have carved a short-term low – UOB

In light of the recent price action, USD/JPY could have bottomed out near the 110.00 handle, suggested FX Strategists at UOB Group.

Key Quotes

“The major 110.00 support continues to hold as USD rebounded strongly from a low of 110.15. Further extension towards 111.50 seems likely but this is a strong resistance and a sustained break above this level seems unlikely for now. Support is at 110.75 followed by 110.40”.

“The key 110.00 support continues to hold as USD rebounded strongly from a low of 110.15. The recent downward pressure has eased but USD has to move above 111.50 to indicate that a short-term low is in place. In other words, it is too early to expect a sustained recovery even though on the converse, the odds for a break below 110.00 have diminished considerably”.