USD/JPY extra downside seen below 112.50 – UOB

FX Strategists at UOB Group see the decline in the pair should gather further traction on a break below 112.50.

Key Quotes

“While we highlighted yesterday that a break below 113.50 would open up the way for a move to 112.55/60, the rapid pace of the decline was unexpected”.

“The immediate risk is still clearly on the downside but we prefer to wait for a daily closing below 112.50 before turning bearish”.

“This appears to be a likely scenario unless USD can move and stay above 113.55 within these 1 to 2 days”.