USD/JPY bearish, still targets 109.50 – UOB

FX Strategists at UOB Group remain bearish on the pair, with the target intact at the mid-109.00s in the near term.

Key Quotes

“USD cracked the 109.90 support yesterday (overnight low of 109.84) and this bodes well for our view (bearish phase started on Monday, 31 Jul)”.

“The immediate target at 109.50 appears to be within reach but this rising trend-line support is a rather strong level and may not yield so easily. Those who are short from 110.55 should look to take profit for half of their position at 109.50”.

“On the upside, stop-loss is lowered to 110.85 from 111.20 previously. In the event of a clear break of 109.50, the focus would shift to the June’s low of 108.80”.