USD/JPY: Expected to trade in a range – UOB Group
|US Dollar (USD) is expected to trade in a range, most likely between 147.00 and 148.00. In the longer run, outlook remains mixed; USD is now expected to trade in a range of 146.00/149.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Outlook remains mixed
24-HOUR VIEW: "Yesterday, we indicated that USD 'may retest last Friday’s low of 146.80.' However, we were of the view that 'any further decline is unlikely to break the major support at 146.55.' We were right on the first count, but not the second, as USD dropped to a low of 146.29. That said, USD rebounded strongly to end the day largely unchanged at 147.41 (-0.07%). Downward pressure appears to have eased with the rebound, and USD is unlikely to weaken further. Today, we expect USD to trade within a range, most likely between 147.00 and 148.00."
1-3 WEEKS VIEW: "Our latest narrative was from Monday (08 Sep, spot at 148.35), in which we indicated that the recent 'sharp but short-lived swings have resulted in a mixed outlook.' We also indicated that USD 'could trade in a range between 146.55 and 149.55.' Although USD broke below 146.55 yesterday, it rebounded strongly from 146.29. The brief decline did not result in any increase in downward momentum. The outlook remains mixed, but we now expect USD to trade in a range of 146.00/149.00."
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