In the opinion of the currency strategists of UOB Group, Lee Sue Ann and Quek Ser Leang, the USD/JPY could rise and revisit the 130.00 zone in the coming weeks.
24 hour outlook: “Yesterday we highlighted that ‘further USD strength was not ruled out, but in view of deeply overbought conditions, the pace of advance was likely to be slower and a clear break of the next major resistance at 130.50 was unlikely’. The USD subsequently rose to 130.23 and fell to 129.50 before trading sideways for the remainder of the sessions.Price action appears to be part of a consolidation and the USD is likely to trade sideways between 129.40 and 130.20.”
Next 1-3 weeks: “Our update from yesterday (02 Jun, pair at 130.05) still stands. As highlighted, while the USD could continue to strengthen, overbought conditions suggest a slower pace of advance. Next resistance lies at 130.50, followed by 130.80. Overall, only a break of 129.00 (no change in yesterday’s ‘strong support’ level) would indicate that the USD strength initiated earlier this week has run its course.”
Source: Fx Street
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