USD/JPY: Bias for USD is on the downside – UOB Group
|There is scope for US Dollar (USD) to edge lower to 143.80 vs Japanese Yen (JPY); a sustained break below this level seems unlikely. In the longer run, the bias for USD is on the downside toward 143.80, potentially to 143.30, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD/JPY can potentially fall to 143.30
24-HOUR VIEW: "Subsequent to USD price action on Monday, we highlighted yesterday, Tuesday that 'There has been no further increase in downward momentum, and instead of weakening today, USD is more likely to trade between 144.60 and 145.70.' Our assessment was incorrect. USD rose to 145.51, dropped to 144.07 and then rebounded to close at 144.50, lower by 0.24%. We still do not detect a significant increase in downward momentum. However, there is scope for USD to edge lower to 143.80. A sustained break below this level seems unlikely. The next support at 143.30 is also unlikely to come into view. Resistance is at 144.75, followed by 145.10."
1-3 WEEKS VIEW: "We have expected USD to consolidate since last week. In our latest narrative from two days ago (19 Mays, spot at 145.30), we indicated that USD 'remains in a consolidation, but we now tighten the range to 144.50/147.30.' Yesterday, USD dropped below 144.50, reaching a low of 144.07. Despite the decline, there has been no significant increase in downward momentum. That said, the bias for USD is on the downside toward 143.80, potentially reaching 143.30. To maintain the momentum, USD must remain below 145.80."
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.