USD/JPY further downside unlikely – UOB

A test of the 111.65/70 band seems to be running out of steam, suggested FX Strategists at UOB Group.

Key Quotes

“Against our expectation, USD cracked the 112.70/75 support to hit a low of 112.53. While downward momentum is not exactly very strong, there is scope for another leg lower towards 112.30 before a recovery can be expected”.

“The ease of which the 112.70 support was taken out last Friday came as a surprise. Downward momentum has improved and while the immediate bias is still clearly on the downside, we still see solid support at 111.65/70 but doubt this support can be taken out. That said, the downward pressure would continue to grow unless USD can reclaim 113.70 within these few days”.

 

1 Week
Avg Forecast 113.11
100.0%70.0%40.0%04050607080901000
  • 40% Bullish
  • 30% Bearish
  • 30% Sideways
Bias Bullish
1 Month
Avg Forecast 114.31
100.0%88.0%59.0%05560657075808590951000
  • 59% Bullish
  • 29% Bearish
  • 12% Sideways
Bias Bullish
1 Quarter
Avg Forecast 114.81
100.0%78.0%56.0%05560657075808590951000
  • 56% Bullish
  • 22% Bearish
  • 22% Sideways
Bias Bullish