USD/JPY: Downside focused on 104.70 – UOB

Pablo Piovano FXStreet

USD/JPY risks further losses if the 104.70 level is cleared in the near-term, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘probe 104.90 first before a rebound can be expected’ did not materialize as it traded within a 105.07/105.49 range. The price actions offer no fresh clues and USD could continue to trade sideways for now, likely between 105.05 and 105.55.”

Next 1-3 weeks: “Yesterday, we indicated that the outlook for USD is mixed and held the view that it ‘could trade between 105.00 and 106.00 for a period of time’. The rapid manner by which it approaches the bottom of the range was not exactly expected (overnight low of 105.02) and downward momentum has improved a tad. While the bias is tilted to the downside, USD has to close below 104.70 before a sustained decline can be expected. For now, the prospect for such a move is not high but it would increase quickly as long as USD does not move above 105.70 within these few days.”

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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