USD/JPY points to a test of 108.70 – UOB

The pair’s stance remains bearish in the near term and could drop to test the 108.70 region, according to FX Strategists at UOB Group.

Key Quotes

“While we turned bearish USD yesterday, we were aware that we were ‘late’ even though there is room for further USD weakness towards 108.70”.

“The suggested entry level at 109.95/00 was met at the time of writing (high of 110.00) and from here, we continue to anticipate a move towards 108.70 (with 109.10 acting as a solid support)”.

“Oversold short-term conditions could lead to a couple of days of consolidation but the bearish phase is deemed as intact unless there is break above 110.50”.