Selling pressure in USD/JPY should ease on a break above the 139.50 levelas suggested by Economist Lee Sue Ann and Market Strategist Quek Ser Leang of UOB Group.
Featured Comments
24 hour view: Our view that USD/JPY “would continue to fall” last Friday and that “137.15 is probably within reach” were incorrect. USD/JPY fell to 137.23 and then staged a strong bounce to close higher for the first time in six days. The bounce in severely oversold conditions suggests that USD/JPY is unlikely to weaken. Today, USD/JPY is more likely to trade in a 137.80/139.00 range.
Next 1-3 weeks: Last Friday (July 14, USD/JPY at 137.80), we were of the opinion that USD/JPY “is likely to break below 137.15 and the next level to look for is the formidable support at 135.80”. USD/JPY then fell to as low as 137.28 before staging a surprisingly sharp rebound (139.15 high). Although the bearish momentum has slowed a bit, we remain of the same view for now. However, if USD/JPY breaks above 139.50 (no change from last Friday’s “strong resistance” level), it would indicate that USD/JPY weakness initiated early last week has stabilized.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
