USD/JPY a test of 105.25 appears likely – UOB

Pablo Piovano FXStreet

The door remains open for the pair to attempt a new visit to the 105.25 level, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for a higher USD was wrong as it dropped to a low of 105.59 before rebounding quickly. Indicators are mostly neutral which suggest sideway trading from here. Expected range for today; 105.60/106.35”.

Next 1-3 weeks: “USD dipped below our expected 105.70/107.50 consolidation last Friday and hit a low of 105.59. While the decline lacks momentum, the undertone has weakened and from here, a retest of the month-to-date low of 105.25 seems likely. At this stage, the prospect for a clear break of this level is not high. Overall, only a move back above 106.80 would indicate that the current mild downward pressure has eased”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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