USD/JPY: Further losses seen below 114.40 – UOB

Pablo Piovano FXStreet

Extra decline in USD/JPY is likely on a breakdown of the 114.40 region in the near term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD dropped to 114.63 last Friday before rebounding to close at 114.78 (-0.59%). Despite the rebound, the risk appears to be tilted to the downside. That said, any USD weakness is expected to face solid support at 114.40. Resistance is at 115.05 followed by 115.25.”

Next 1-3 weeks: “Our view from last Thursday (03 Mar, spot at 115.55) where USD could rise to 115.90 was invalidated as USD dropped below our ‘strong support’ level at 115.00 (low of 114.63). Downward momentum is beginning to build but USD has to close below the major support at 114.40 before further weakness is likely (next support is at 114.00). The chance for USD to close below 114.40 is not high for now but would remain intact as long as USD does not move above 115.40 within these few days.”

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.