USD/JPY drop could extend to 99.05 – UOB

In opinion of analysts at UOB Group, USD/JPY’s downside could well see a test of the 99.00 neighbourhood in the next 1-3 weeks.

Key Quotes

“After trading quietly for the past 2 weeks, USD broke below the major 100.50 support and dropped sharply to a low of 99.50/55”.

“The sharp and rapid decline is clearly overextended but strong momentum suggests that there is room for further extension towards the 99.05/10 low seen on the day of Brexit. Only a move back above 101.50 would indicate that a short-term low is in place”.