USD/JPY door open for a test of 105.50/55 – UOB

Analysts at UOB Group have suggested USD/JPY could slip towards YTD lows in the 105.50/55 band in the upcoming weeks.

Key Quotes

“The rebound in USD did not quite test the 107.50 resistance (high of 107.25). The down-move from the high is gaining momentum and the risk is tilted to the downside from here”.

“The decline from last Friday’s peak is gaining momentum and our immediate target at 106.00 appears to be within reach. A break below this level would shift the focus towards the 105.50/55 low seen in early May. Stop-loss is adjusted lower to 107.50 from 107.90 even though 107.05 is already a strong short-term resistance”.