USD/JPY back to neutral stance – UOB
|The outlook on the pair is now neutral from bullish, pointing to a consolidative trade within the 111.45/112.90 range.
Key Quotes
24-hour view: “USD dropped swiftly to a low of 111.98 before staging an equally rapid recovery to current level. The choppy swing has resulted in a mixed outlook. That said, the undertone has weakened upon the break of 112.00 and the immediate bias is for a probe lower towards the bottom of the expected 112.00/112.70 sideway trading range”.
Next 1-3 weeks: “We highlighted the increasing risk of a short-term top in recent updates and the breach of the 112.20 stop-loss yesterday was not exactly unexpected. The 113.43 high registered last Friday is deemed as a short-term top and from here, USD has likely moved into a consolidation phase. That side, the immediate bias is tilted to the downside but at this stage, any weakness is unlikely to move significantly below the expected 111.45/112.90 consolidation range”.
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.