USD/JPY now expected to trade within a sideline theme – UOB

FX Strategists at UOB Group now see USD/JPY moving into a rangebound phase in the near term.

Key Quotes

24-hour view: “Expectation for USD to “test the 108.10” did not materialize as it traded in relatively quiet manner and within a narrow range of 108.28/108.66. The price action is viewed as part of a consolidation phase and USD is likely to continue to trade sideways for today, expected to between 108.35 and 108.80”.

Next 1-3 weeks: “While our ‘strong support’ level at 108.10 is still intact, the weak daily closing last Friday (108.42, -0.21%) is enough to indicate that the USD strength that started more than a week ago has run its course. The price action was not surprising as we cautioned last Friday (18 Oct, spot at 108.65) that the “odds for further USD strength have diminished”. From here, USD is likely to consolidate and trade sideways within a 107.80/109.00 range. Looking ahead, there is no pre-indication on which side of the trading range is more vulnerable”.

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

EUR/USD holding onto range amid trade tensions, ahead of FOMC minutes

EUR/USD is trading above 1.1050, within familiar ranges. The US Senate's support of Hong Kong protesters has aggravated tensions with China. The Federal Reserve's meeting minutes are eyed.


GBP/USD is on the back foot after the Johnson-Corbyn debate

GBP/USD is trading closer to 1.29, after Labour leader Corbyn beat expectations in his debate with PM Johnson. Further opinion polls are awaited. 


USD/JPY trades in red below 108.50 as 10-year US T-bond yield erases more than 2%

Dismal market mood helps JPY find demand on Wednesday. 10-year US Treasury bond yield erases more than 2%. US Dollar Index recovers to 98 area ahead of FOMC minutes.


Gold climbs to near 2-week tops, beyond $1475 supply zone

Gold edged higher through the early European session on Wednesday and climbed to near two-week tops, just above the $1475 region in the last hour.

Gold News

FOMC Minutes October 29-30 Preview: Reinforcing the rate pause

The completion of the Federal Reserve’s “insurance policy”, so named by Chairman Powell, has bought the base rate to 1.50%-1.75% where it was a little more than a year ago on the first of May 2018.

Read more