USD/JPY: Downward momentum is beginning to ease – UOB Group
|After the sharp swings, the outlook is unclear; US Dollar (USD) could trade in a range of 145.40/148.50 vs Japanese Yen (JPY). In the longer run, downward momentum is beginning to ease; a breach of 148.50 would indicate that the weakness in USD has stabilised, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD can trade in a range of 145.40/148.50
24-HOUR VIEW: "We noted yesterday that USD 'has gathered momentum,' but we were of the view that it 'might not be able to break below 145.00.' USD weakened more than expected, plummeting to a low of 143.98 and then rallied sharply during the NY session (high was 148.27). After the sharp swings, the outlook is mixed. Today, USD could trade in a range of 145.40/148.50."
1-3 WEEKS VIEW: We have held a negative USD view since early this month. In our latest narrative from two days ago (08 Apr, spot at 147.50), we pointed out that 'the oversold weakness in USD has not stabilized.' We indicated that 'there is a chance for USD to drop below 145.00 again before the risk of another rebound increases.' Yesterday, USD dropped to 143.98 before rebounding strongly. Downward momentum is beginning to ease, and a breach of 148.50 (no change in ‘strong resistance’ level) would indicate that the weakness in USD has stabilised. Until then, there is a small chance for USD to retest the 144.00 level."
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.