USD/JPY further downside unlikely – UOB

Pablo Piovano FXStreet

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
1 Month
1 Quarter

1 Week

Avg Forecast 113.11

40% Bullish
30% Bearish
30% Sideways

Bias Bullish

1 Month

Avg Forecast 114.31

59% Bullish
29% Bearish
12% Sideways

Bias Bullish

1 Quarter

Avg Forecast 114.81

56% Bullish
22% Bearish
22% Sideways

Bias Bullish

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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