USD/JPY predicted to keep the 105.00-106.00 range unchanged – UOB

Pablo Piovano FXStreet

USD/JPY is expected to navigate the 105.00-106.00 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘edge higher’ did not materialize as it traded in a muted manner between 105.28 and 105.50. The underlying tone still appears firm and we continue to see chance for USD to edge higher and while a break of 105.70 is not ruled out, a sustained advance above this level appears unlikely for now (next resistance is at 106.00). Support is at 105.30 followed by 105.15.”

Next 1-3 weeks: “Last Thursday (15 Oct, spot at 105.20), we indicated that USD ‘has to close below 104.70 before a sustained decline can be expected’. USD subsequently traded in a quiet manner and the mild downward pressure has eased. Momentum indicators are mostly neutral and USD could trade between 105.00 and 106.00 for now.”

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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