USD/JPY still targets 105.50 – UOB

The research team at UOB Group still expects the pair to re-visit the area of 2016 lows in the mid-105.00s.

Key Quotes

“In with expectation, USD retested 105.70/75 (low of 105.60) before rebounding to end the day off the low. The recent strong downward pressure appears to have eased but in view of the sharp decline recently, it is too early to expect a sustained recovery”.

“Overall, it is more likely that USD is consolidating its weakness and would trade sideways at these lower levels”.