A downside correction in USD/JPY could visit the 127.00 zone in the coming weeks, say UOB Group currency strategists Quek Ser Leang and Peter Chia.
Key comments
24 hour view: “We expected USD/JPY to ‘trade sideways into a 127.35/128.35 range’ yesterday. USD/JPY subsequently moved between 127.13 and 128.05 before closing broadly unchanged at 127.87 (+0.02%). The stock price still looks to be part of a consolidation and we expect USD/JPY to trade between 127.20 and 128.20 today.”
Next 1-3 weeks: “Not much to add to our update from yesterday (May 23, USD/JPY at 127.90). As highlighted, while bearish momentum has subsided, there is room for USD/JPY to retest the level of 127.00 A break of this level is not ruled out but at this point any further decline is expected to face strong support at 126.50 Overall only a break of 128.55 (‘strong resistance’ level was yesterday at 128.90) would indicate that the current bearish pressure has eased.”
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
