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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD off 7-month highs, still firmer as Tories hold the lead

GBP/USD retraces from the new seven-month highs of 1.3180 but remains strongly bid, as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.


EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/UDS dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 


Forex Today: US-Sino trade tensions prevail, Boris closer to victory, EUR/USD licking its wounds

Trade talks: President Donald Trump has called on the World Bank to stop lending to China, a move that may aggravate tensions, with only six days to go until Washington is set to slap new tariffs on Beijing. Negotiations continue.

Read more

Gold: Sidelined after biggest daily decline in four weeks

Gold is lacking a clear directional bias in Asia, having registered its biggest single-day decline in four weeks on Friday. China's data may embolden President Trump to take more aggressive measures. 

Gold News

USD/JPY in search of a firm direction, stuck in a range above mid-108.00s

USD/JPY was seen oscillating in a narrow band and consolidated last week’s losses. US-China trade uncertainties continued underpinning the JPY’s safe-haven status. Investors now seemed reluctant ahead of the latest FOMC monetary policy update.