USD/JPY Bearish Bias Could Extend to 148.15 Area in Coming Weeksaccording to economist Lee Sue Ann and market strategist Quek Ser of UOB Group.
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24-hour outlook: Yesterday we maintained the view that USD/JPY “has room to test 149.35 before the risk of a rebound increases.” We were also of the opinion that “149.00 is unlikely to be threatened.” Our view was incorrect as USD/JPY plunged to 148.79 before bouncing back. The bounce into oversold conditions suggests that USD/JPY is unlikely to weaken much further. Today, USD/JPY is most likely to trade between 148.75 and 149.75.
Next 1-3 weeks: Yesterday (October 30, USD/JPY at 149.75) we observed that the recent bullish momentum had largely dissipated. We expected USD/JPY to trade in a range of 149.00/150.70. We did not expect USD/JPY to fall to a low of 148.79. The bearish momentum is timid, and USD/JPY is likely to trade with a bearish bias towards 148.15. At this point, it is too early to tell if USD/JPY has enough momentum to break below this level. Generally, only a break of 150.30 would indicate that the downtrend has faded.
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.
