USD/JPY short-term top in place? – UOB

Analysts at UOB Group believe USD/JPY could have carved a short-term top above the 104.00 handle.

Key Quotes

“In line with expectation, USD extended its gain but the upmove was contained by the major 104.15/30 resistance zone (high of 104.07). The subsequent rapid pull-back suggests that the recent upward pressure has eased and the current movement is viewed as part of a consolidation phase even though the immediate bias is tilted to the downside”.

“The stop-loss for bullish view at 102.70 was barely intact as USD dipped to a low of 102.78 yesterday. While the downward pressure appears to have eased with the subsequent strong recovery, USD has to punch above the major 104.15/30 resistance or the risk of a short-term top could not be ruled out just yet”.