USD/JPY now moved into a consolidation phase – UOB
|FX Strategists at UOB Group remain neutral on spot and expect it extend the rangebound theme in the near term.
Key Quotes
24-hour view: “While we highlighted yesterday “a break of 113.05 seems highly unlikely”, the sharp and rapid drop from a high of 112.72 came as a surprise. The price action suggests that USD has likely made a short-term top and the current movement is viewed as part of a consolidation phase. In other words, USD is expected to trade sideways, likely within a 111.85/112.55 range”.
Next 1-3 weeks: “There is not much to add to yesterday’s (18 Oct, spot at 112.65) update. As highlighted, the 111.61 low registered on Monday (15 Oct) is likely a short-term bottom and USD has moved into a 111.80/113.30 consolidation range. Looking ahead, the risk of a break of the bottom of the range appears to be higher but even then, any decline has to contend with the rather strong support zone between 111.50 and 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.