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Further decline could still be on the cards for USD/JPY, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD just nose-dived to a low of 101.61 before snapping higher. While the risk is clearly on the downside, any decline could be punctuated by sharp rebound. The supposedly long-term support levels have ‘merged’ into short-term levels. The next support from here is at 101.00 followed by 100.00. From here, USD is not likely to move above the opening gap around 105.00 (minor resistance is at 104.00).”

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).”