USD/JPY: Further losses seen below 131.50 – UOB
|USD/JPY is expected to accelerate losses on a breakdown of 131.50, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
Key Quotes
24-hout view: “Last Friday, we expected USD to trade in a broad range between 132.50 and 134.30. However, from a high of 133.83, USD plummeted to a low of 131.55 before rebounding. The rebound amid oversold conditions suggests USD is unlikely to weaken further. Today, USD is more likely to trade sideways between 131.70 and 133.20.”
Next 1-3 weeks: “We have expected USD to weaken since the start of last week. In our latest narrative from last Thursday (16 Mar, spot at 133.40), we indicated that while there is scope for USD to weaken further, the major support at 131.50 is unlikely to come into view so soon. On Friday, USD dropped to 131.55 before rebounding. Despite the relatively sharp drop, there is no significant increase in momentum. We continue to hold a negative USD view but it has to break and stay below 131.50 before a move towards the next support at 130.45 is likely. The downside risk is intact as long as USD does not move above 133.80 (‘strong resistance’ level previously at 135.10).”
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.