In light of the recent price action, USD/JPY could embark on a consolidating range in the coming weeks.as suggested by Economist Lee Sue Ann and Market Strategist Quek Ser Leang of UOB Group.
24 hour view: “Yesterday, we expected USD/JPY to trade sideways between 139.0 and 140.70. We do not anticipate volatility picking up as USD/JPY traded choppy in a wide 139.58/140.93 range.” The bearish momentum appears to be building and the trend for USD/JPY is bearish. Given the timid build-up of momentum, any decline is likely to face strong support at 139.30. The next support at 138.80 is unlikely to be threatened for now. Resistance is at 140.20, followed by 140.40″.
Next 1-3 weeks: “We turned positive on USD/JPY mid-month. As USD/JPY rallied, in our last analysis on Monday (May 29, USD/JPY at 140.85), we held the view that USD/JPY could break above 141.00, but strong long-term resistance at 142.00 may not be broken We added that “only a break of 139.30 would indicate that USD/JPY strength is over.” Yesterday (May 30), USD/JPY It rose and hit a fresh 6-month high at 140.93 and then fell sharply to close at 139.79 (-0.46%).Although our “strong support” at 139.30 has yet to be broken, the sharp pullback and declining momentum suggest it is little USD/JPY is likely to break above 141.00 this time. From here, USD/JPY is likely to trade in a range between 137.00 and 141.00.”
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.