USD/JPY outlook shifted to neutral – UOB

According to the FX research team at UOB Group, USD/JPY has shifted its outlook to neutral from bullish, risking a potential test of the mid-103.00s.

Key Quotes

“While we highlighted the diminished odds for further USD strength in recent updates, the ease of which the key 104.00 support was taken out was unexpected”.

“The bullish phase that earlier last month has ended and the current price action is deemed as a corrective pull-back which could extend lower to 103.50 with room for further extension to 103.00”.

“Overall, this pair is expected to stay on the defensive in the coming days unless it can reclaim 104.60”.