A further drop in USD/JPY looks likely as long as it is below the 132.00 level.according to economist Lee Sue Ann and UOB market strategist Quek Ser Leang.
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24 hour view: “Yesterday we highlighted that USD/JPY “probably goes down to 130.60, possibly testing 130.20 support”. Although USD/JPY weakened as expected, it did not test 130.20 support (130.39 low). Bearish momentum has subsided on the bounce and USD/JPY is unlikely to weaken further. Today, USD/JPY is more likely to be range bound, expected to be between 130.70 and 131.75.”
Next 1-3 weeks: “We expect USD/JPY to weaken from the middle of last week. After USD/JPY fell to 129.67 and bounced strongly, in our latest update on Monday (March 27, USD/JPY at 130.70) , we indicated: “Further USD/JPY weakness is not ruled out, but the pair has to break and hold below 129.60 before a further decline is likely.” Since then, USD/JPY has not been able to move much higher. The bearish momentum is waning rapidly and the risk of USD/JPY bottoming is increasing, however, only a break of 132.00 (no change at yesterday’s “strong resistance”) would indicate that USD/ JPY doesn’t keep going down.”
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.
