USD/JPY downside alleviated above 101.60 – UOB

In opinion of analysts at UOB Group, USD/JPY’s stance remains tilted to the downside as long as it trades below 101.60.

Key Quotes

“While USD dipped to 100.60 as expected, the subsequent rebound from the low was much weaker than anticipated. The undertone appears to be weak but momentum is patchy at best and the 100.15/20 low seen on Wednesday is unlikely to come under serious threat”.

“The downward pressure is still on the downside and as indicated yesterday, a retest of the post-Brexit low of 99.05/10 would not be surprising. That said, downward momentum is patchy at best and a sustained break below 99.05/10 seems unlikely. Only move back above 101.60 would indicate that the downward pressure has eased”.