USD/JPY: a continuation of the rally is increasingly likely (UOB)

UOB believes that the USD/JPY climb again on the forex.

"The USD/JPY relapsed after peaking at 106.97 on Monday. The rapid decline seems stretched, but a new drop towards 106.00 is not out of the question either.

At this point, a clear break below this threshold seems unlikely (the next support level is at 105.70).

On the upside, only a move above 106.80 would indicate that bearish pressures have eased."