USD/JPY stays bearish, targets 109.50 – UOB

In view of FX Strategists at UOB Group, the pair’s stance remain bearish with an immediate target around the mid-109.00s.

Key Quotes

“The target indicated 110.30 yesterday was exceeded as USD dropped to an overnight low of 110.18. While further USD weakness is likely in the days ahead, the current decline is over-extended and any extension lower for today is likely limited to a ‘test’ 110.00/05 (next support at 109.80). Resistance is at 110.70 followed by 111.00”.

“We just turned bearish USD yesterday and there is no change to the view. The entry level suggested at 110.85 was not reached as USD only touched a high of 110.77. Those still looking to enter short may like to wait for a bounce to 110.55/60. The immediate target is unchanged at 109.50 but the stop-loss is adjusted slightly lower to 111.20 from 111.50”.