According to FX Strategists at UOB Group, USD/JPY faces extra losses on a close below 114.30.
24-hour view: “We highlighted yesterday that ‘the underlying tone still appears to be on the soft side and we continue to see chance for USD to dip below 115.00’. Instead of dipping below 115.00, USD plunged to a low of 114.36 before settling on a soft note at 114.63 (-0.56%). The rapid decline appears to be overdone but there is room for USD to test 114.30. The next support at 114.00 is not expected to come into the picture. On the upside, a breach of 115.10 (minor resistance is at 114.85) would indicate that the current weakness has stabilized.”
Next 1-3 weeks: “Two days ago (11 Jan, spot at 115.20), we held the view that the recent USD strength has come to an end and we expected USD to trade between 114.55 and 115.90. Yesterday (12 Jan), USD dropped below 114.55 (low of 114.36). Downward momentum is beginning to improve but USD has to close below 114.30 before a sustained decline can be expected. The prospect for USD to close below 114.30 would remain intact as long as USD does not move above 115.35 (‘strong resistance’ level) within these couple of days. Looking ahead, the next support below 114.30 is at 114.00.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.