USD/JPY could re-test the 99.00 area – UOB

The research team at UOB Group has suggested there is scope for USD/JPY to test recent lows in the 99.00 region.

Key Quotes

“USD dropped to a low of 100.18 before recovering quickly and strongly to an overnight high of 101.46. While further USD decline seems likely in the coming days, the current weakness appears to be over-extended and further sustained down-move is not expected for now”.

“While the sharp drop yesterday suggests that the current USD weakness could retest the post-Brexit low of 99.05/10, we are not convinced that such a move is sustainable. Overall, we prefer to hold a neutral view for now even though the downward pressure would continue to increase as long as 102.50 is intact”.