USD/JPY points south near 106.00 – UOB

A test of the 106.00 neighbourhood in USD/JPY still remains on the cards, according to the research team at UOB Group.

Key Quotes

“Expectation for further USD weakness was wrong as we witnessed a strong rebound in overnight trading (high of 107.65). A temporary low is likely in place and the current movement is viewed as part of a consolidation phase”.

“USD/JPY rebounded on Monday, hitting highs of 107.66 from intraday-lows of 106.38, after comments by Japanese officials warning that they are watching exchange rates. The pair was also lifted by Yellen’s comments”.

“But attention will slowly build to Wednesday’s domestic data. Japan’s current account is expected to decline slightly in April. Meanwhile, GDP for the first quarter should tick higher to 0.5% from 0.4% previously, whilst the yearly print is expected to expand to 1.9%, up from 1.7%”.