USD/JPY eyes next hurdle at 108.50 – UOB


USD/JPY could advance further and is expected to test the mid-108.00s in the near term, noted FX Strategists at UOB Group.

Key Quotes

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures