untitled design

USD/JPY: A drop below 127.50 loses momentum – UOB

According to UOB Group currency strategists Lee Sue Ann and Quek Ser Leang, expectations for a likely drop below 127.50 in USD/JPY continue to decline.

Key comments

24 hour view: “Yesterday we highlighted that ‘price action is likely part of a consolidation’ and we expected USD/JPY ‘to move sideways within a range of 128.70/129.65’. USD/JPY subsequently moved between 128.81 and 129.77. It would not be surprising if it continues to move sideways, probably between 128.80 and 129.80.”

Next 1-3 weeks: “Not much to add to our update from yesterday (May 17, USD/JPY at 129.15). As highlighted, the chance of USD/JPY moving below 127.50 has diminished. However, only a break of 129.90 would indicate downside risk has dissipated.”

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular