USD/JPY still risks a test of 99.05 – UOB

Analysts at UOB Group still expect USD/JPY to test the 99.00 region in the next 1-3 weeks.

Key Quotes

“USD rebounded without testing the recent 99.50/55 low. While the current recovery could extend higher, any up-move is not expected to move significantly above the 100.70 resistance”.

“As highlighted in recent updates, the drop in USD is overextended but there is room for further weakness to 99.05/10. However, the odds for such a move would diminish quickly unless USD can break below the recent low of 99.50/55 soon. On the upside, stop-loss for the bearish view remains unchanged at 101.20 even though 100.70 should ideally cap any short-term rebound”.