The currency strategists of UOB Group noted that the outlook for USD / JPY continues to point to further decline in the short term.
24 hour perspective: “Our expectation that the USD would move higher was incorrect, as it plunged to 108.34 before making a quick and sharp rally. Despite the sharp decline, the bearish momentum has barely improved and it is unlikely that the USD to weaken. For today, the USD is more likely to trade sideways between 108.50 and 109.00“.
Next 1-3 weeks: “We continue to maintain the same view as from Monday (May 10, even at 108.80). As highlighted, the short-term bias is to the downside, but we are aware of the strong support at 108.20. The USD fell to 108.34 yesterday (May 11), but the drop was short-lived as it quickly rebounded. Bearish momentum is starting to show signs of easing and the outlook for the USD to move to 108.20 has diminished somewhat. That being said, the The downside bias is considered intact as long as the USD does not move above 109.20 (previously ‘strong resistance’ level at 109.35) “.
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