FX Strategists at UOB Group now expect USD/JPY to trade within a consolidative mood in the next weeks.
24-hour view: “Our expectation for USD to ‘consolidate and trade sideways’ was wrong as it dropped sharply for the third straight day. The decline over the past few days appears to be running ahead of itself. However, there is no sign of stabilization just yet and further weakness is not ruled out. That said, we view any decline from here as part of a lower trading range of 109.65/110.60 (a sustained drop below 109.65 is not expected).”
Next 1-3 weeks: “We highlighted yesterday (24 Feb) that ‘if USD were to break 111.20, it would indicate it need more time to muster enough momentum to challenge to the critical 112.40 level’. However, the manner by which USD cracked 111.20 and the subsequent plunge to a low of 110.32 came as a surprise. The price action suggests that last Thursday’s (20 Feb) high of 112.21 is a top, albeit likely a temporary one. From here, USD could continue to trade in volatile manner but is expected to stay to within last week’s broad 109.64/112.21 for a while.”
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.