USD/JPY consolidative near term – UOB

Pablo Piovano FXStreet

The pair is expected to continue its sideline patter for the time being, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “The strong 106.60 support was unthreatened as USD rebounded smartly from a low of 106.68. While upward momentum is not that strong, the recovery has scope to extend above last week’s top near 107.50 but a break of the next resistance at 107.90 seems unlikely. Support is at 106.95 followed by the still rather strong level of 106.60”.

Next 1-3 weeks: “There is not much as USD continues to trade in a surprisingly quiet manner (the range since lasts Thursday has been less than 100 pips, between 106.60 and 107.49). We continue to hold a neutral stance but on shorter-term note, the undertone has improved and this could lead to a move above 107.50 but at this stage, any up-move is unlikely to break above the top of our expected 106.20/107.90 consolidation range”.

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD holds below 1.1700 despite Fed rate cut, US Jobless Claims data eyed

The EUR/USD pair posts modest losses near 1.1690 during the early European trading hours on Thursday. However, the US Federal Reserve's dovish rate cut on Wednesday could weigh on the US Dollar against the Euro. Traders await the release of the US weekly Initial Jobless Claims report, which is due later on Thursday.

GBP/USD softens as traders eye BoE rate cut next week

The GBP/USD pair trades in negative territory near 1.3365 during the early European trading hours on Thursday, pressured by the rebound in the US Dollar. Nonetheless, the potential downside might be limited after the US Federal Reserve delivered a rate cut at its December policy meeting. Traders brace for the US weekly Initial Jobless Claims report, which will be published later on Thursday.

Gold retreats from weekly top as USD rebounds slightly following the post-FOMC slump

Gold retreats following a modest Asian session uptick to the $4,247 area, or a fresh weekly high, and for now, seems to have snapped a two-day winning streak. A generally positive risk tone, along with a modest US Dollar bounce from its lowest level since October 24, turns out to be a key factor undermining demand for the safe-haven precious metal.