USD/JPY still under pressure – UOB

The research team at UOB Group reiterated USD/JPY remains vulnerable and could attempt a test of the 108.20 area.

Key Quotes

“USD dropped to a low of 108.49 before rebounding. While downward momentum is showing early signs of slowing, it is too early to expect a sustained recovery”.

“We turned USD neutral yesterday and were of the view that the short-term decline has room to extend lower to 108.20. At this stage, a sustained move below this level is not expected. Overall, this pair is expected to remain under pressure in the coming days unless it can move back above 110.50”.