UOB Group: USD/JPY downward momentum dented

United Overseas Bank analysis team suggest that the USD/JPY price action has dented the downward momentum even as surprisingly robust recovery in USD yesterday did not take out the 110.95 ‘key resistance.’

Key Quotes

“We continue to hold the view that USD is “under pressure” even though the prospect for a test of solid 109.40 support has diminished.”

“In order to revive the flagging downward momentum, USD has to move and stay below 110.00 within these few days or a break of 110.95 would not be surprising and would indicate the start of a sideway-trading phase.”