USD/JPY targets 108.00 near term – UOB

In view of FX Strategists at UOB Group, there is scope for USD/JPY to test the 108.00 handle in the next weeks.

Key Quotes

“USD opened on a weak note earlier this morning and took out last week’s 108.52 low. The down-move appears incomplete and extension towards 108.00 seems likely. This is a major support and is unlikely to yield so easily (next support is at 107.45/50). On the upside, resistance is at 108.70 but only a move above 109.00 would indicate that a short-term low is in place”.

“The bearish phase that started last Wednesday is clearly intact as the immediate target of 108.60 was easily exceeded. The focus is on 108.00 now followed by 107.45/50. Stop-loss is adjusted lower to 109.30 from 109.80 even though 109.00 is already a strong shorter-term resistance”.