USD/JPY faces some choppy trading in the near-term – UOB

Pablo Piovano FXStreet

While further pullbacks are not ruled out, USD/JPY is seen attempting to consolidate in the short-term horizon, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD opened on a weak note yesterday but rebounded strongly and rapidly. Downward momentum has eased and the current movement is viewed as a consolidation phase. While USD is likely to trade sideways for today, the immediate bias is for it to probe to the top of the expected 107.80/109.20 range first.”

Next 1-3 weeks: “We expected ‘further USD weakness’ last Friday (28 Feb, spot at 109.50) but clearly did not anticipate the outsized plunge that led to a low of 107.49. Such large 1-day decline (the -1.38% drop last Friday is the largest in 33 months) is rare and while further weakness is not ruled out, the odds for a sustained drop below 106.30 are not high. Meanwhile, USD could continue to trade in a choppy manner over the next few days and only a move back above 110.00 (‘strong resistance’ level was at 110.45 last Friday) would indicate the current weakness has stabilized.”

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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