USD/JPY neutral, likely between 110.20/113.10 – UOB
|FX Strategists at UOB Group have shifted to neutral from bearish on the pair in the short term.
Key Quotes
“The strong rally from a low of 110.84 was unexpected. The rally appears to be running ahead of itself but there is scope for extension to 112.35. At this stage, a sustained move above this level is not expected (next resistance at 112.70)”.
“The bearish phase that started last Thursday has ended as USD took out the trailing stop-loss at 111.90 (111.99 high at time of writing). The price action is not surprising as we have warned of the waning momentum over the past couple of days. From here, USD is deemed to have moved into a consolidation phase and in view of the outsized drop last week, a broad sideway consolidation between 110.20 and 113.10 would not be surprising”.
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.