USD / JPY weak phase seems to be oversay UOB Group currency strategists.
Key Comments:
24 hour view: “We highlighted yesterday that the outlook for USD / JPY is mixed and we expected it to trade between 107.50 and 108.20. Subsequently, the USD / JPY moved within a narrower range than expected (107.63 / 108.19). The pair is moving with a firm tone as it opens in Asia and the bias is tilting higher towards 108.40. A breakout of this strong resistance is not ruled out, but the next resistance at 108.75 is not expected to enter the picture. Support is at 108.00 followed by 107.80 “.
Next 1-3 weeks: “Yesterday (April 26, USD / JPY at 107.85), we highlighted that ‘there is a possibility that USD / JPY will decline to 107.30’. We added, ‘a break out of the’ strong resistance ‘at 108.40 would indicate that the weak phase has The USD / JPY subsequently rallied and while 108.40 remains intact, the rapid loss of momentum suggests that the weak phase that started three weeks ago is over. The current move is considered the early stages of a consolidation phase, although the bias is for the USD / JPY to first test the expected range limit of 107.60 / 108.75 ”.
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