USD/JPY risks a potential drop to 146.00 – UOB

Pablo Piovano FXStreet

The continuation of the selling pressure could drag USD/JPY to the 146.00 neighbourhood in the next few weeks, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: Yesterday, USD dropped to a low of 146.65, rebounded to 147.90, and then ended the day at 147.24 (-0.16%). While downward momentum has slowed somewhat, there is scope for USD to dip to 146.50 before a more sustained recovery is likely. Today, the major support at 146.00 is unlikely to come into view. Resistance is at 147.50, followed by 147.90.

Next 1-3 weeks: USD dropped to a low of 146.65 yesterday, its lowest level since mid-September. Downward momentum is building rapidly, and USD is likely to continue to weaken. The levels to watch are 146.50 and 146.00. To keep the momentum going, USD must stay below 148.40 (‘strong resistance’ level).

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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