USD/JPY: a test of 110.00 loses traction – UOB


In opinion of FX Strategists at UOB Group, a move to the key 110.00 area in USD/JPY looks unlikely, at least in the very near-term.

Key Quotes

24-hour view: “We highlighted yesterday ‘USD could test the strong 109.75 resistance’ but held the view ‘a sustained rise above this level appears unlikely’. While USD came close to 109.75, the sharp sell-off from 109.72 was clearly not anticipated. The rapid drop is deep in oversold territory, but it is too early to expect a recovery. From here, USD could edge lower but any weakness is viewed as lower trading range of 108.75/109.25 (a sustained decline below 108.75 is not expected).”

Next 1-3 weeks: “The failure to break the major 109.75 resistance (high of 109.72 yesterday) coupled with the sharp sell-off from the high suggests that USD is not ready to trade above 110.00 just yet (we previously held the view ‘a break of 109.75 would greatly increase the odds for USD to move above 110.00’). From here, USD is deemed to have moved into a sideway-trading phase even though the weakened underlying tone suggests it would likely test the bottom of the expected 108.50/109.55 sideway-trading range first.”

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 

EUR/USD News

GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.

GBP/USD News

XAU/USD inches closer to multi-year highs, trades around $1,810

The XAU/USD pair registered its highest weekly close since September of 2011 at $1,799 on Friday and continued to push higher on Monday.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures