USD/JPY stable above 116.00 – UOB

USD/JPY is expected to stabilize above the 116.00 handle, noted FX Strategists at UOB Group.

Key Quotes

“In line with expectations, USD dipped initially towards 114.20 (low of 114.18) before rebounding quickly to exceed the 115.05/10 target with a high of 115.44. The subsequent sharp drop from the high is gaining momentum and a move below last week’s 113.73 low would not be surprising”.

“The immediate bias is still tilted to the downside but downward momentum is showing signs of waning. However, confirmation of a short-term low is only upon a move above 116.00. Until then, another leg lower below last week’s 113.70/75 low (next support at 113.10/15) cannot be ruled out just yet even though the odds for such a move are not high”.