USD/JPY: Likely to trade between 142.10 and 145.50 – UOB Group
|There is scope for US Dollar (USD) to continue to weaken against Japanese Yen (JPY); the major support at 142.10 is unlikely to come under threat. In the longer run, price action suggests that USD is still trading in a range, most likely between 142.10 and 145.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/JPY is set to continue weakening
24-HOUR VIEW: " In wake of the strong rebound in USD two days ago, we stated yesterday that 'the sharp rebound appears to be excessive, and any further rebound is likely part of a higher range of 143.30/144.30 instead of a sustained advance.' USD then rose above 144.30 (high of 144.38) and then in a sudden move during the NY session, plummeted to a low of 142.58. This time around, the sharp decline appears to be excessive. However, there is scope for USD to continue to weaken, even though the major support at 142.10 is unlikely to come under threat (there is another support at 142.35). Resistance is at 143.00; a breach of 143.40 would suggest that the weakness has stabilised."
1-3 WEEKS VIEW: "Our update from yesterday (04 Jun, spot at 143.85) remains valid. As highlighted, the recent price action 'suggests USD is still trading in a range, most likely between 142.10 and 145.50'.”
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