USD/JPY now looks to 106.80 – UOB

The next important resistance area in USD/JPY remains at 106.80, according to analysts at UOB Group.

Key Quotes

“USD dropped sharply to a low of 104.62 in late NY last Friday but opened sharply higher this morning. While the downward pressure has eased with the strong rebound, the current up-move is viewed as part of a broad consolidation phase and not the start of a sustained up-move”.

“While the 106.00 target that was first highlighted last Wednesday was exceeded  USD dropped sharply after touching a high of 106.30. As mentioned previously, the next resistance above 106.00 is at the 106.80 high seen on the day of Brexit. That said, the pullback has dented the recent impulsive momentum and those who are long should look to book partial profit at 106.60, ahead of the major 106.80 level. Stop-loss is adjusted higher to 104.50 from 104.00”.