After the recent price action, USD/JPY is expected to move around 114.75 and 116.05 in the coming weeks, currency strategists at UOB Group suggest.
Key comments
24 hour view: “Our expectations for a higher USD/JPY last Friday were wrong as it fell sharply and broke some strong support levels with ease (low at 115.00). Despite the strong rebound from the low, risk remains on the For today, USD/JPY could retest 115.00, but a sustained drop below this level is unlikely (next support is at 114.75). Resistance is at 115.60. Followed by 115.85.”
Next 1-3 weeks: “USD/JPY’s sharp sell-off to a low of 115.00 last Friday came as a surprise. The break of our ‘strong support’ at 115.40 indicates that the recent bullish pressure has dissipated. The current move is seen as part of a consolidation and USD/JPY is likely to move between 114.75 and 116.05 for now. Looking ahead, a break of 114.75 could trigger a deep drop in USD/JPY.”
Source: Fx Street
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