USD/JPY keeps its bearish note unchanged – UOB

The research team at UOB Group reiterated the bearish outlook on USD/JPY, adding that the consolidation phase could extend further.

Key Quotes

“In line with expectation, USD dipped to 100.05/10 (low of 100.07) before rebounding quickly to meet the 100.60 target (high of 100.61). Improved upward momentum suggests further USD strength but Monday’s high of 100.90/95 is acting as a strong resistance and a sustained move above this level is not expected for now”.

“The current price action has resulted in further loss in downward momentum and unless USD can move and stay below 99.90 by end of today, the bearish outlook will shift to neutral (a break above 100.80 would have the same result). In other words, the bearish phase that started middle of last week appears to be ending and this would likely lead to a period of consolidation at these lower levels”.