USD/JPY: Bears may try to test 148.20 – UOB Group
|Outlook is mixed; the US Dollar (USD) could trade choppily between 148.20 and 150.50, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.
The next support is at 148.20
24-HOUR VIEW: “The following are the excerpts from our update yesterday: ‘Further USD weakness is not ruled today. However, severely oversold conditions suggest the significant support level at 148.20 is likely out of reach. There is another support level at 149.00. To maintain the momentum, USD must remain below 151.30 with minor resistance at 150.50.’ USD then fluctuated wildly, as it dropped to 148.48, bounced strongly to 150.89, and then dropped back down to close at 149.36 (-0.41%). The choppy price action has resulted in a mixed outlook. Today, USD could continue to trade in a choppy manner, likely between 148.20 and 150.50.”
1-3 WEEKS VIEW: “Our update from yesterday (01 Aug, spot at 149.90) is still valid. As highlighted, the recent USD weakness is still intact, and the next level to watch is 148.20. The USD weakness is intact as long as 152.00 (‘strong resistance level was at 152.80 yesterday) is not breached.”
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