USD/JPY shifted to bearish, risks a test of 99.50 – UOB

The research team at UOB Group shifted their focus on USD/JPY to bearish from neutral, expecting a potential test of 99.50/55 in the near term.

Key Quotes

“USD had a volatile session by rising strongly to a high of 102.78 before reversing quickly and plunging to a low of 100.28. While USD weakness is expected in the days ahead, the current decline is extremely over-extended and further sustained down-move is unlikely for today”.

“The volatile price action yesterday was finally resolved to the downside as USD closed just above the day’s low of 100.28 (from a high of 102.78 during Asian hours). The drop appears to be over-extended but further USD weakness towards 99.50/55 could not be ruled out. Only a move back above 101.50 would indicate that a short-term low is in place”.