USD/JPY: Any decline may not break below 145.8 – UOB Group

FXStreet Insights Team FXStreet

Sharp drop in US Dollar (USD) has scope to extend against Japanese Yen (JPY), but any decline may not break below 145.80, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sharp drop in USD/JPY has scope to extend

24-HOUR VIEW: "USD traded in a range of 146.96/147.88 two days ago. In the early Asian session yesterday, we highlighted that 'the price movements still appear to be part of a consolidation phase, likely between 146.90 and 148.00.' USD then fluctuated between 146.66 and 147.71 before settling at 147.10 (-0.17%). The price action provides no fresh clues, and we expect USD to trade in a range of 146.60/147.70 today."

1-3 WEEKS VIEW: "In our most recent narrative from Monday (04 Aug, spot at 147.25), we highlighted that 'the sharp drop in USD from last Friday has scope to extend.' However, we pointed out that 'any decline may not break below 145.80.' We continue to hold the same view. Overall, only a breach of 148.25 (‘strong resistance’ level was at 148.60) would indicate that the scope for the sharp drop to extend has faded."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD drops to two-week low, further below 0.7000 after RBA's less hawkish rate hike

AUD/USD drifts lower for the second straight day on Tuesday, hitting a fresh two-week low during the Asian session after the Reserve Bank of Australia's (RBA) widely expected 25 bps rate hike. The decision was far from unanimous, with three members preferring to hold rates at 4.60%. This tempers expectations of further tightening, which, along with modest US Dollar strength, weighs on the currency pair.

USD/JPY fails near 159.00 amid weak USD, intervention risks

USD/JPY edges lower during Tuesday’s Asian session, reversing part of the previous day's gains to 158.00 as the US Dollar remains depressed amid hopes for Iran diplomacy and ahead of US midterm elections. Meanwhile, intervention risks support the Japanese Yen, though the uncertainty over the timing of the next BoJ rate hike caps gains. This keeps the pair confined within a familiar range and warrants caution before placing directional bets.