Outlook for USD/JPY remains mixed – UOB
|USD/JPY could now trade within the 109.50-110.70 range in the short-term horizon, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “While we expected USD to strengthen yesterday, we were of the view that ‘a break of the strong resistance at 110.20 is unlikely’. The subsequent USD strength exceeded our expectation as it rose 110.38. The rapid rise appears to be running ahead of itself and USD is unlikely to strengthen much further. For today, USD is more likely to trade sideways between 109.95 and 110.45.”
Next 1-3 weeks: “We noted yesterday (21 Jul, spot at 109.90) that ‘downward momentum has waned but only a break of 110.20 would indicate that USD is unlikely to weaken further’. USD subsequently broke 110.20 and rose to 110.38. Downward pressure has dissipated and USD is unlikely to weaken further. The recent sharp but short-lived swings have resulted in a mixed outlook and USD could trade within a 109.50/110.70 range for now.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.