The research team at UOB Group noted the bearish outlook for USD/JPY on a close below 112.50. Key Quotes “Despite the rebound from the overnight low of 112.41, it is too early to expect a sustained recovery. However, there are signs that the current downward momentum is faltering and a clear move below the overnight low is unlikely”. “Downward momentum is clearly improving rapidly and from here, a daily closing below 112.50 would indicate the start of a bearish phase in USD. This appears to be a likely scenario unless USD can reclaim 113.50 in the next 1 to 2 days”. For more information, read our latest forex news.