USD/JPY bearish view unchanged – UOB

USD/JPY remains bearish in the near term and keeps targeting 109.50, according to FX Strategists at UOB Group.

Key Quotes

“The anticipated USD strength exceeded our expectation by easily moving above the 110.75 target (high of 110.98). The sharp drop from the high and the equally rapid swing higher from an overnight low of 110.27 have resulted in a mixed outlook. Further choppy trading is expected, likely within a 110.35/111.05 range”.

“The recovery from the 109.91 low seen two days ago (01 Aug) is more resilient than expected. While this has dented the downward momentum, only a clear break above 111.20 (stop-loss level unchanged) would indicate that our bearish USD expectation is wrong. Until then, a move towards the 109.50 target is not ruled out just yet even though 109.90 is acting as a rather strong support now”.