USD/JPY now seen within 110.60-111.65 – UOB

Pablo Piovano FXStreet

USD/JPY is now expected to navigate between 110.60 and 111.65 in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to strengthen last Friday but we were of the view that ‘deeply overbought conditions suggest that 111.95 could be just out of reach’. USD subsequently rose to 111.65 but fell sharply to 110.94 during NY hours. Upward pressure has dissipated and the current movement is viewed as part of a consolidation phase. For today, USD is likely to trade between 110.85 and 111.35.”

Next 1-3 weeks: “The positive phase in USD that started last Thursday (01 Jul, spot at 111.05) ended quickly as USD plunged and breached our ‘strong support’ level at 111.00 last Friday (low of 110.94). The breach of the strong support amid rapid loss in momentum indicates that USD has likely moved into a consolidation phase. From here, USD could trade between 110.60 and 111.65 for a period of time.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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