The USD/JPY could see its bearish pressure gain some strength in the short term, say UOB Group market strategist Quek Ser Leang and rates strategist Victor Yong.
24 hour outlook: “Yesterday, we held the view that “USD weakness was likely to extend, but a sustained drop below 145.00 was unlikely. Although our opinion was not wrong, since the USD fell to 145.10, we did not expect the strong rebound from the low (the maximum was 146.92). The rebound appears to be early and the USD is unlikely to go much further. For today, the USD is more likely to trade sideways within a range of 145.55/147.05“.
Next 1 to 3 weeks: “Yesterday (Oct 27, pair at 146.05) we highlighted that downside momentum was timidly building and the USD could drop, but the odds of a sustained decline below 144.00 were not high. Our view has not changed. To the upside, a break of the strong resistance at 148.80 (unchanged from yesterday’s level) would indicate that the momentum build-up has faded.”
Source: Fx Street
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