Considering the recent price action, USD/JPY could still challenge the 137.90 region on the near term horizonaccording to the Economist Lee Sue Ann and the Market Strategist Quek Ser Leang of UOB Group.
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24 hour view: “We expected USD/JPY to rally further yesterday, but note that ‘overbought conditions suggest a sustained rally above 137.90 is unlikely.’ However, USD/JPY failed to challenge 137.90 as it staged a Surprisingly sharp retracement from 137.77 (136.30 low). Bullish momentum has faded and USD/JPY has likely entered a consolidation and trades between 135.50 and 137.70 today.”
Next 1-3 weeks: “Yesterday (May 2, USD/JPY at 137.40), we held the view that USD/JPY is likely to continue to strengthen and the focus is on the March high near 137.90. We did not expect price volatility as that USD/JPY rose to 137.77 during the Asian session and then plunged to 136.30 in the New York session.Although there is still room for USD/JPY to rise above 137.90, overbought conditions could lead to a couple of days of consolidation. In view of the increased volatility, we adjust our ‘strong support’ level to 135.20 from 136.00. A break of the ‘strong support’ level could indicate that 137.90 is not in sight for now.”
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.
