USD/JPY continues to target 131.15 – UOB

Pablo Piovano FXStreet

The likelihood of further gains remains unchanged once USD/JPY clears 131.15, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘the rebound from the low has room to extend but a sustained advance above 130.80 appears unlikely’. Our expectations did not materialize as USD traded between 129.73 and 130.53. The price actions are likely part of a consolidation phase and USD is expected to trade within a range of 129.60/130.60 today.”

Next 1-3 weeks: “Our update from yesterday (31 Jan, spot at 130.40) is still valid. As highlighted, while upward momentum is showing signs of increasing, USD has to break above 131.15 before a sustained advance is likely. The chance of USD breaking above 131.15 will remain in place as long as USD stays above 129.30 (no change in ‘strong support’ level) within the next few days. Looking ahead, the next resistance level above 131.15 is at 132.00.”

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.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.