USD/JPY downside pressure appears alleviated – UOB

According to FX Strategists at UOB Group, the downside momentum around USD/JPY seems mitigated for the time being.

Key Quotes

“The sharp drop to a low of 111.67 and the subsequent strong rebound was clearly unexpected. While the recovery appears to be running ahead of itself, there is scope for further extension to 113.35 but last week’s peak near 113.75/80 is acting a major resistance and is unlikely to yield so easily”.

“The low of 111.67 did not quite reach the major support near 111.55/60. The subsequent strong rebound suggests that the recent short-term downward has eased and USD has likely moved back into a consolidation range, likely between 112.00 and 114.20”.