USD/JPY: Rising bets for a move above 110.55 – UOB
|USD/JPY is now expected to attempt a surpass of the 110.55 level in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected USD to ‘trade sideways within a 109.75/110.10 range’ yesterday. However, USD dropped briefly to 109.57 during NY session before rebounding strongly. USD traded on a firm note during early Asian hours and the build-up in momentum could lead to a test of 110.35. The major resistance at 110.55 is unlikely to come under threat. Support is at 109.90 followed by 109.70.”
Next 1-3 weeks: “We have expected USD to trade within a 109.30/110.55 range since 19 Aug (spot at 109.90). Our view was not wrong as USD traded within the range for the past two weeks. Shorter-term momentum is beginning to build and the risk for USD to break the top of our expected range at 110.55 has increased. The risk of a break of 110.55 would continue to increase as long as USD does not move below 109.50 within these few days. Looking ahead, a break of 110.55 would shift the focus to 110.80.”
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.