USD/JPY could still slip further back and re-test the 100.00 area in the next weeks, in opinion of FX Strategists at UOB Group.
24-hour view: “The supersized collapse in USD yesterday is severely over-extended and USD is unlikely to repeat yesterday’s breath-taking performance. For today, USD is likely to consolidate at these depressed levels, expected to be between 101.50 and 104.30.”
Next 1-3 weeks: “We indicated last Friday (06 Mar, spot at 106.20) that USD ‘is still weak but it is left to be seen if the current momentum can carry it lower to next support of note at 105.00’. USD subsequently dropped to 104.98 during NY session on Friday. It gapped lower upon opening this morning and at the time of writing has snapped higher after plunging briefly a low of 101.58. The explosive decline is likely not over yet and the next support levels of note are 100.00 followed by the 2016 low near 99.08. The gap at 105.00 is acting as a ‘strong resistance’ now (level was at 107.30 last Friday).”