According to Lee Sue Ann, an economist at UOB Group, and Quek Ser Leang, market strategist, the bullish bias of the USD/JPY seems to be fading.
24 hour outlook: “Yesterday we highlighted that while the USD was likely to trade with a bullish bias, it was unlikely to break the main resistance at 134.40 today.” And we added: “Support is at 133.20, followed by 132.70.” The USD rose as high as 134.04 in Asian trade, but in NY trade it plunged to a low of 132.72. Bullish pressure has subsided and the current move is likely to be part of a consolidation phase. Today, we expect the USD to trade in a range of 132.60/133.70“.
Next 1-3 weeks: “We have expected a stronger USD since the beginning of the week. Following the USD rally, on Tuesday (April 11, pair at 133.30) we highlighted that the USD could consolidate for a couple of days before rising to 134.40. Yesterday ( April 13), the dollar marked a new all-time high at 134.04 and then fell back. Bullish momentum begins to fade and USD rally to 134.40 odds decrease. However, only a break of 132.20 (no change at the ‘strong support’ level) would indicate that the USD does not strengthen further.”
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.
