Further weakness could put USD/JPY under additional bearish pressure in the near term, suggests economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group.
24 hour perspective: We expected the USD to trade in a range of 147.00/148.50 last Friday. Instead of trading in a range, the USD fell sharply to a low of 146.65. Today the Dollar continues to weaken in the early stages of Asian trade. Rapidly increasing momentum likely to lead USD to fall to 146.00. The next major support at 145.05 is unlikely to be threatened. Resistance lies at 146.80, followed by 147.20.
Next 1-3 weeks: Last Friday (December 1, pair at 147.85), we highlighted that the USD would likely trade in a range between 146.65 and 149.30 before heading lower at a later stage. However, the Dollar quickly fell to a low of 146.65 in late NY trading. The price action suggests that USD weakness has resumed sooner than expected. The level to watch is 146.00. If this support is broken, attention will focus on 145.05. To maintain momentum, USD must remain below 148.10.
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.
