USD/JPY downside risks have increased – UOB

Spot remains expose to further pullbacks, suggested the research team at UOB Group.

Key Quotes

“The downside risk has clearly increased with the unexpected sharp drop last Friday”.

“However, supports are stacks at 111.00 followed by last month’s low at 110.65 and at this stage, it is unclear whether the current weakness can extend significantly below these major supports”.

“That said, this pair is expected to remain under pressure in the next few days unless it can reclaim 112.45”.