USD/JPY looks offered, now targets 108.05 – UOB

USD/JPY is expected to extend the correction lower to the 108.00 area in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘edge lower within a 108.75/109.25 range’ yesterday. Instead of edging lower, USD plummeted for the second day and briefly cracked the 108.50 support (low of 108.47). While strong downward momentum suggests further USD weakness is likely, severely oversold conditions could ‘limit’ any decline to 108.30. On the upside, only a move above 109.00 would indicate the current weakness has stabilized (minor resistance is at 108.80).”

Next 1-3 weeks: “We detected the weakened underlying tone yesterday (03 Dec, spot at 109.00) and expected USD ‘to test the bottom sideway-trading range’ at 108.50 first. While the view was not wrong, the rapid pace of the subsequent decline came as a surprise as USD plummeted and moved a few pips below 108.50 during NY hours (low of 108.47). The price action has resulted in a rapid improvement in momentum and from here, USD is expected to trade with downward bias towards 108.05. On the upside, only a break of the 109.20 ‘strong resistance’ would indicate that our view is wrong”.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD extends losses toward 1.1250 amid coronavirus concerns

EUR/USD is trading closer to 1.1250 as concerns about US coronavirus cases are growing. Eurozone finance ministers are meeting ahead of next week's summit.  US PPI and updated COVID-19 statistics are awaited.


GBP/USD pressured under 1.26 amid risk-off mood, Brexit uncertainty

GBP/USD is trading below 1.26, off the highs. Rising US coronavirus cases are pushing markets lower and the safe-haven dollar higher. Concerns about Brexit and the UK refusal to participate in the EU coronavirus vaccine scheme are weighing on sterling. 


Gold refreshes session tops, moves back above $1800 mark

The prevalent risk-off mood assisted gold to reverse an early dip to the $1796 region. A modest pickup in the USD demand might cap any further gains for the commodity. Investors also worried about the possibility of further escalation of Sino-US tensions.

Gold News

Canada Net Change in Employment June Preview: June is looking better and better

Job gains expected to more than double in June. Unemployment rate to drop to 12% from 13.7 in May. Ivey PMI was twice its forecast in June, highest since Nov 2019. USD/CAD would benefit from better June job figures.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News