USD/JPY: Trades choppily between 142.60 and 148.00– UOB Group
|The US Dollar (USD) is likely to trade in a range, probably between 142.60 and 148.00. The next significant support level is some distance away at 140.80, but it remains to be seen if this level will come into view, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.
USD can’t find a direction
24-HOUR VIEW: “USD is likely to trade in a range, probably between 142.60 and 148.00. We indicated yesterday that USD ‘is likely to continue to weaken, but the potential for further decline is unclear.’ We pointed out that ‘support levels are at 144.00 and 143.00.’ USD subsequently plunged to 141.66, and then snapped back, closing at 144.17 (-1.62%). Downward momentum appears to be slowing. This, combined with severely oversold conditions suggest USD is likely to trade in a range today, probably between 142.60 and 148.00.”
1-3 WEEKS VIEW: “Yesterday (05 Aug, spot at 145.25), we noted that ‘the weakness in USD has not stabilised.’ We pointed out that ‘the next significant support level is some distance away at 140.80, but it remains to be seen if this level will come into view.’ We continue to hold the same view. Overall, the USD weakness is intact as long as 148.60 is not breached.”
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