USD/JPY might drop to 146.30 – UOB Group
|US Dollar (USD) is likely to trade in a range between 146.70 and 147.70. In the longer run, sharp declines appear excessive, but USD could drop to 146.30. The odds for a continued decline below this level are not high, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD is likely to trade between 146.70 and 147.70
24-HOUR VIEW: "On Wednesday, USD dropped to a low of 146.57 and then rebounded. Yesterday, we were of the view that 'the sharp drop appears excessive, and instead of continuing to decline, USD is more likely to trade in a range between 146.70 and 148.00.' USD subsequently fluctuated between 146.58 and 147.51, closing slightly higher by 0.12% at 147.23. The price action provides no fresh clues, and we continue to expect USD to trade in a range today, most likely between 146.70 and 147.70."
1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (02 Oct, spot at 147.30). As highlighted, 'the recent sharp declines appear excessive, but USD could drop to 146.30.' However, we noted that 'the odds of a continued drop below this level are not high.' Overall, only a breach of 148.20 (‘strong resistance’ level was at 148.55 yesterday) would indicate that the decline in USD is stabilising."
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.