USD/JPY could advance further and is expected to test the mid-108.00s in the near term, noted FX Strategists at UOB Group.
24-hour view: “We highlighted yesterday “108.20 appears to be within reach but prospect for a sustained USD advance above this level is not that high”. We added, “107.50 is likely strong enough to hold any intraday pull-back”. USD subsequently dropped to 107.50 before soaring to 108.18 during late NY hours. The rapid advance over the past few days is showing sign of ‘tiring’ and while USD could advance from here, any up-move is viewed as a higher trading range of 107.80/108.30. The next resistance at 108.50 is unlikely to come into the picture for today”.
Next 1-3 weeks: “The 107.90 level that was highlighted last Friday (06 Sep, spot at 107.00) was exceeded at the time of writing. While our expectation for a rebound to 107.90 was correct, the pace of advance has been more rapid than anticipated. The price action has resulted in a sharp pick-up in momentum and the USD strength could carry it higher to the next pit-stop is at 108.50. On the downside, only a break of 107.20 (strong support previously at 106.30) would indicate that the current upward pressure has eased. Shorter-term, 107.50 is already a strong support level”.
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.