USD/JPY now focused on 113.50 – UOB
|FX Strategists at UOB Group remain bullish on the pair, while it is expected to test the mid-113.00s on the near term.
Key Quotes
24-hour view: “USD dipped briefly to hit a low of 111.64 last Friday before recovering quickly. Downward pressure has eased with the rebound and there is scope for the current strength to extend higher even though last week’s top near 112.70 is expected to offer solid resistance (next resistance is at 113.00). Support is at 111.95 followed by the 111.64 low”.
Next 1-3 week: “USD hit a low of 111.64 last Friday, just a few pips above the stop-loss for our bullish view at 1116.60. As highlighted last Friday, “upward momentum is showing signs of easing off but this is seen as part of a consolidation and not a reversal”. That said, USD has to move above the recent high near 112.70 soon or the odds for further USD strength would diminish quickly. The level to focus on above 112.70 is at 113.50. The latter level is major resistance and based on the current momentum, a clear break above this level seems unlikely. Stop-loss remains unchanged at 111.60”.
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.