USD/JPY: Probable move to 109.00 on the cards – UOB

USD/JPY could lose further ground and grind lower to the 109.00 area, according to FX Strategists at UOB Group.

Key Quotes

24-hoour view: “The sharp plunge in USD last Friday came as a surprise. The rapid drop has gathered considerably momentum and USD could weaken further to 109.25. The next support at 109.00 is unlikely to come into the picture. Resistance is at 109.75 followed by 109.95.”

Next 1-3 weeks: “While we noted last Thursday (12 Aug, spot at 110.40) that ‘upward momentum has slowed’, we did not anticipate the sharp sell-off on Friday that sent USD plummeting to 109.53. The risk has shifted quickly to the downside and USD could weaken to 109.00 from here. Resistance is at 109.95 but only a break of 110.15 would indicate that the downside risk has dissipated.”