USD/JPY: Rising bets for a move above 110.55 – UOB
USD/JPY is now expected to attempt a surpass of the 110.55 level in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected USD to ‘trade sideways within a 109.75/110.10 range’ yesterday. However, USD dropped briefly to 109.57 during NY session before rebounding strongly. USD traded on a firm note during early Asian hours and the build-up in momentum could lead to a test of 110.35. The major resistance at 110.55 is unlikely to come under threat. Support is at 109.90 followed by 109.70.”
Next 1-3 weeks: “We have expected USD to trade within a 109.30/110.55 range since 19 Aug (spot at 109.90). Our view was not wrong as USD traded within the range for the past two weeks. Shorter-term momentum is beginning to build and the risk for USD to break the top of our expected range at 110.55 has increased. The risk of a break of 110.55 would continue to increase as long as USD does not move below 109.50 within these few days. Looking ahead, a break of 110.55 would shift the focus to 110.80.”
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.
