USD/JPY risks a potential drop to 127.00 – UOB

Pablo Piovano FXStreet

Further downside pressure could drag USD/JPY to the 127.00 area in the next weeks, commented FX Strategists at UOB Group Quek Ser Leang and Peter Chia.

Key Quotes

24-hour view: “Last Friday, USD traded sideways within a relatively narrow range between 127.52 and 128.29 before closing largely unchanged at 127.85 (+0.04%). The movement is likely part of an ongoing consolidation phase. In other words, USD could continue to trade sideways, expected to be within a range of 127.35/128.35.”

Next 1-3 weeks: “USD dropped sharply to 127.01 last Thursday before rebounding. While downward momentum has eased somewhat, there is room for USD to retest the 127.00. A breach of this level is not ruled out but at this stage but any further decline is expected to face solid support at 126.50. Overall, only a breach of 128.90 (‘strong resistance’ level) would indicate that the current downward pressure has eased.”

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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