UOB: Chances for a breakthrough of USD/JPY below 110.00 fall substantially

In light of recent changes in the price of USD/JPY, the pair can reach the bottom near the psychological level of 110.00, suggest currency strategists at UOB Group.
The major support at 110.00 still remains as the dollar rose sharply from the minimum at 110.15. The further expansion of the correction to 111.50 seems likely, but it has strong resistance level and a break above this level is a low-probability. Support is at 110.75 and then at 110.40.
Support key level of 110.00 helped the Bulls to gather strength indicating a sharp recovery in the dollar from the minimum at 110.15. The recent downward pressure lose weight but needs the dollar to break above 111.50, to show that it has formed a short term bottom. In other words, it is too early to expect a sustained recovery, although a break below 110.00 is unlikely, analysts say.