USD/JPY still targets 106.00 – UOB

In opinion of analysts at UOB Group, the Japanese currency could gather traction towards the 106.00 neighbourhood.

Key Quotes

“USD traded mostly sideways but the weak close suggests increasing downward pressure and the risk is on the downside for today. That said, momentum is not strong and a sustained move below the Monday’s low of 106.35 appears unlikely (next support is at 106.00)”.

“While USD has eased off from the recent high of 107.90, downward momentum is not strong. That said, the bearish phase is still intact and we continue to anticipate a move to 106.00. Stop-loss is adjusted slightly lower to 107.90 from 108.10”.