USD/JPY downside momentum fading – UOB

In view of the research team at UOB Group, the downside bias in USD/JPY seems to be running out of steam.

Key Quotes

“Against our expectations, USD dropped below the 104.05/10 and is quickly approaching the major 103.50/55 support”.

“While a breach of this level would not be surprising, patchy downward momentum suggest limited downside risk and the next major level at 103.00 is unlikely to come into the picture (103.30 is already a strong support). Resistance is at 104.20 but only a move back above 104.50 would indicate that the downward pressure has eased”.

“While USD declined quickly after touching a high of 104.84 yesterday, downward