USD/JPY: Likely to trade between 143.00 and 144.10 – UOB Group
Further US Dollar (USD) consolidation would not be surprising against Japanese Yen (JPY), most likely between 143.00 and 144.10. In the longer run, further declines are not ruled out, but USD may consolidate for a couple of days first, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Further declines are not ruled out
24-HOUR VIEW: "USD dropped to a low of 142.66 two days ago and then rebounded. Yesterday, when USD was at 143.50, we pointed out that 'the rebound in oversold conditions indicates that, instead of weakening, USD is more likely to consolidate in a range of 142.90/144.30 today.' USD subsequently traded between 143.31 and 144.24. Further consolidation would not be surprising, most likely between 143.00 and 144.10. Looking ahead, should USD break clearly below 143.00, it could trigger a deeper decline."
1-3 WEEKS VIEW: "We revised our USD view to negative two days ago (01 Jul, spot at 143.80), indicating that 'downward momentum is beginning to build, and a break of 143.50 could trigger further declines toward 142.70.' USD then dropped to a low of 142.66 before rebounding. Yesterday (02 Jul, spot at 143.50), we stated that 'while further declines are not ruled out, USD may consolidate for a couple of days first before heading lower.' We will maintain the same view as long as 144.60 (‘strong resistance’ level previously at 144.85) is not breached."
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FXStreet Insights Team
FXStreet
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