USD/JPY: A drop to 133.00 loses traction – UOB
|The probability that USD/JPY could slip back to the 133.00 region appears not favoured for the time being, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
Key Quotes
24-hour view: “We noted yesterday ‘the price movements appear to be consolidative’ and we expected USD to ‘trade sideways in a range of 134.55/135.55’. USD traded sideways as expected albeit in a narrower range of 134.71/135.35. Further sideways trading appear likely, expected to be between 134.70 and 135.55.”
Next 1-3 weeks: “Our update from yesterday (09 May, spot at 135.10) still stands. As highlighted, after plummeting to a low of 133.49 last Friday, USD has not been able to make further headway on the downside. The odds for USD to weaken further to 133.00 have diminished. However, only a breach of 135.85 (no change in ‘strong resistance’ level from yesterday) would suggest that the weakness in USD has stabilized.”
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.