The US Dollar (USD) could fall further to 160.20 before stabilization can be expected. The USD strength since the middle of last month has come to an end, and for the time being, the pair will likely trade in a range of 159.40/161.80, analysts note. UOB Group.
USD/JPY could fall to 160.20
24 HOURS VIEW:”Last Friday, we expected the USD to trade in a range of 160.80/161.80. Our view was wrong as the USD fell to a low of 160.33 before bouncing back to close at 160.72 (-0.33%). Despite the bounce, the USD weakness has not stabilized. Today, As long as USD stays below 161.15 (minor resistance is at 160.95), USD could fall further to 160.20 before stabilization can be expected.”
1-3 WEEK OUTLOOK:”We noted last Thursday (July 4, pair at 161.45) that ‘bullish momentum is starting to slow, but only a break of 160.45 would suggest that the USD is not strengthening further.’ On Friday, the USD fell to a low of 160.33. The break of our ‘strong support’ level of 160.45 indicates that the USD strength since the middle of last month has come to an end. Current price movements are likely part of a range trading phase. At the moment, the USD is likely to trade between 159.40 and 161.80.”
Source: Fx Street
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