USD/JPY oversold, could test 105.00 – UOB

The pair’s condition remains oversold for the time being and a test of the 105.00 still stays on the cards, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD rebounded strongly from a fresh low of 105.52 last Friday. Downward pressure has eased and USD has likely moved into a consolidation phase and is likely to trade sideways for now. Expected range for today; 105.75/106.70”.

Next 1-3 weeks: “The outlook for USD shifted to bearish last week when it broke below the key 108.00 support. The decline since then has been impulsive as USD touched a low of 105.52 on Friday. The down-move is severely oversold but there is room for further extension to 105.00. Only a move back above 107.30 would indicate that a short-term low is in place”.