USD/JPY could slip back to 111.05/10 – UOB

FX Strategist at UOB Group believes USD/JPY could retreat further and test the 111.00 neighbourhood in the next 1-3 weeks.

Key Quotes

“The anticipated USD weakness exceeded our expectation by easily taking out several strong supports to hit an overnight low of 111.53. The sudden downward acceleration appears incomplete and from here, barring an unexpected move back above 112.15, USD is expected to make another push lower towards 111.05/10”.

“The sudden acceleration lower yesterday that took out the strong 111.65/70 support was unexpected. The decline is severely oversold especially from a shorter-term perspective but there is room for further extension to 111.05/10. Key short-term resistance has moved lower to 112.50”.