USD/JPY might decline toward 150.20 – UOB Group

FXStreet Insights Team FXStreet

Bias remains on the downside, and USD could decline toward 150.20. In the longer run, the current price movements are likely the early stages of a 149.50/153.00 range-trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD/JPY has entered a range-trading phase

24-HOUR VIEW: "We expected USD to 'edge lower and test 151.20' yesterday. However, we pointed out that 'given the current mild downward momentum, a continued decline below this level is unlikely.' Our view of a lower USD was not wrong, even though it fell more than expected to a low of 150.88. USD closed on a soft note at 151.04 (-0.52%). The bias remains on the downside, and USD could decline toward 150.20. Based on the current momentum, a clear break below this level is unlikely. To keep the downward bias going, USD must not break above 151.55 (minor resistance is at 151.25)."

1-3 WEEKS VIEW: "On Monday (13 Oct, spot at 152.05), we indicated that 'the current price movements are likely to early stages of a range-trading phase, probably between 149.50 and 153.00.' We continue to hold the same view for now."

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FXStreet Insights Team

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