UOB Research discusses USD/JPY technical outlook and adopts a tactical bullish bias in the near-term.
"USD/JPY dropped to a low of 102.57 last week before staging a swift and robust rebound. The rebound cracked the declining trend-line resistance and weekly MACD has turned positive for the first time since June 2020. The price actions suggest that the current movement is the early stages of a recovery phase that could extend to the 55-week exponential moving average at 106.00. This level is also close to the high in October last year," UOB notes.
"While the risk is on the upside for the next one month or so, it is too early to tell if USD/JPY can move above 106.00 in a sustained manner. On the downside, support is at 103.50 followed by the still rather strong level at 102.50," UOB adds.