USD/JPY keeps the bearish note, targets 108.70 – UOB

FX Strategists at UOB Group remain bearish on spot, expecting it to visit the 108.70 area in the next 1-3 weeks.

Key Quotes

“While we turned bearish USD yesterday, we were aware that we were ‘late’ even though there is room for further USD weakness towards 108.70”.

“The suggested entry level at 109.95/00 was met at the time of writing (high of 110.00) and from here, we continue to anticipate a move towards 108.70 (with 109.10 acting as a solid support)”.

“Oversold short-term conditions could lead to a couple of days of consolidation but the bearish phase is deemed as intact unless there is break above 110.50”.