USD/JPY faces the next support at 104.00 – UOB

The outlook on USD/JPY remains tilted to the downside with the next target of significance at the 104.00 area, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “The sudden sharp lurch lower in USD came as a surprise. The outsized decline appears to be running ahead of itself but is not showing any sign of stabilization just yet. From here, there is scope for USD to test the support at 104.20 first before the current weakness should stabilize. Resistance is at 104.90 followed by 105.10.”

Next 1-3 weeks: “After trading in a quiet manner for several days, USD jolted awake and plunged to a low of o104.32. While the sudden and sharp drop appears to be running ahead of itself, there is no denying that downward momentum has improved considerably. That said, it is left to be seen if USD can crack the September’s low near 104.00. Overall, USD is expected to stay on the defensive unless it can move above 105.40 (‘strong resistance’ level).”