USD/JPY poised for a strong rebound – UOB

Pablo Piovano FXStreet

In view of FX Strategists at UOB Group, the pair could be getting ready for a stronger rebound in the near term.

Key Quotes

24-hour view: “The ‘target’ highlighted at 112.20 yesterday was exceeded as USD dropped to a low of 111.98. While it is too early to expect a sustained rebound, the current price action looks like the early stages of a basing process. From here, allow for a retest of 111.95/00 but 111.70 is expected to hold for a move higher to 112.60”.

Next 1-3 weeks: “As highlighted in recent updates, the current positive undertone in USD is deemed as intact as long as the key short-term support at 111.30 is not taken out. However, USD has to surmount the strong 113.15 resistance before a more sustained up-move can be expected. The prospect for such a scenario is not high at this stage but is expected to improve as long as 111.30 is not taken out”.

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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