USD/JPY needs to clear 100 for a test of 99.00 – UOB

The research team at UOB Group suggested that a test of the 99.00 region hinges on a breach of the key 100.00 handle.

Key Quotes

“In line with expectation, USD retested the early Sydney hours peak of 100.85/90 (high of 100.93) before easing off. The down-move from the high appears to have scope to extend lower but 100.00 is a strong support and this level may not yield so easily”.

“While the stop-loss for the bearish USD view at 101.20 is still intact, the recent price action continues to suggest diminished odds for further weakness. From here, USD has to move and stay below 100.00 or the prospect for a move to the 99.05/10 low seen on the day of Brexit would continue to dim”.