USD/JPY strong support lies at 102.50 – UOB

USD/JPY remains well supported around the mid-102.00s, according to the FX research team at UOB Group.

Key Quotes

“The anticipated USD weakness exceeded our expectation as the break of 103.50 led to a test of 103.00. The undertone is still weak but with indicators at rather oversold levels, 103.00 is expected to continue to offer solid support. On the upside, resistance is at 103.70 but only a move back above 104.00 would indicate that temporary low is in place”.

“We shifted from a bullish to neutral stance yesterday and expected the pull-back to extend lower. However, the pace of the down-move has been more rapid than expected and the current USD weakness could extend further towards the key 102.50 support. At this stage, a sustained move below this level seems unlikely. Overall, this pair is expected to stay under pressure unless it can reclaim 104.00”.

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