USD/JPY: Oversold conditions suggest any decline may not reach 150.60 – UOB Group
|Further weakness US Dollar (USD) is not ruled out; deeply oversold conditions suggest any decline may not reach 150.60. In the longer run, USD outlook remains negative; the level to monitor is 150.00, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD outlook remains negative
24-HOUR VIEW: “USD sold off sharply two days ago. Yesterday, we indicated that ‘despite the deeply oversold conditions, the weakness has not stabilised.’ We highlighted that USD ‘could drop further, but given the oversold conditions, it might not be able to break the significant support at 151.80.’ The 151.80 support was tested in Asian trade yesterday but held. However, the level gave way during NY session as USD plunged. The breach of the significant led to a sharp selloff to 151.23. While further USD weakness is not ruled out, deeply oversold conditions decline suggest that any decline may not reach 150.60 (minor support is at 150.00). Resistance levels are at 151.80 and 152.50.”
1-3 WEEKS VIEW: “We revised our USD outlook to negative yesterday (06 Feb, spot at 152.60), but we noted that ‘there is a significant support level at 151.80.’ We did not expect USD to breach the support level as quickly. The outlook remains negative, and the level to monitor now is 150.00. We will maintain our negative view as long as 153.30 (‘strong resistance’ level was at 154.30 yesterday) is not breached.”
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.