USD/JPY remains oversold, could test 99.50 – UOB

The research team at UOB Group noted the oversold condition of USD/JPY and suggested it could re-test the mid-99.00s.

Key Quotes

“The range of 100.07/100.92 yesterday was close to our expected sideway trading range of 100.00/100.90. However, the strong daily closing suggests that the current recovery has room to extend higher but at any up-move is expected to face stiff resistance at 101.30. Support is at 100.45 ahead of 100.05/10”.

“While the outlook for USD turned bearish yesterday, the down-move is extremely oversold. However, further extension to 99.50/55 cannot be ruled out. Only a move back above 101.50 would indicate that a short-term low is in place”.