The currency strategists of UOB Group noted that USD / JPY could still try to move to the 109.85 level in the coming weeks.
24 hour perspective: “We expected the USD to trade within a range of 108.35 / 108.95 last Friday. However, it rose to 109.16 before closing on a firm note at 109.00 (+ 0.47%). Strong bullish momentum suggests that the USD could move above last week’s high near 109.25, but overbought conditions could “cap” any advance to 109.50. Support is at 108.75 followed by 108.50 “.
Next 1-3 weeks: “We have had a positive view on USD for over 2 weeks. In our latest narrative from last Wednesday (March 10, pair at 108.55), we highlighted that the sharp pullback from 109.23 had lessened the odds of further USD strength. We added that the USD had to rally soon as a prolonged consolidation at these overbought levels would quickly increase the risk of a deeper pullback. While the USD rose to 109.16 on Friday (March 12), the bullish momentum has not improved much. The USD has to close above 109.25 before a sustained rally to 109.85 can be expected. Meanwhile, the current positive phase is considered intact as long as the USD does not move below 108.20 (the ‘strong support’ level was previously at 108.00) “.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
