USD/JPY risks a break below 110.00 – UOB

FX Strategists at UOB Group noted risks of a breakdown of the 110.00 handle keep rising in the near term in USD/JPY.

Key Quotes

“USD dropped sharply at the time of writing after US announced missile attack on Syria. The risk has shifted quickly to the downside towards 110.00 and a break of this level could lead to acceleration lower towards 109.60. All in, this pair is expected to stay under pressure unless it can reclaim 110.75”.

“As indicated yesterday, the downside still appears to be more vulnerable even though we do not attach high odds for a break below 110.00. At the time of writing, USD dropped sharply after US announced missile attack on Syria and the risk has shifted quickly to the downside. This pair is expected to stay under pressure unless it can reclaim 111.00 in the next few days. A drop below 110.00 would open up the way for a move to 109.60, possibly 109.10”.