USD/JPY seen supported near 106.20 – UOB

Pablo Piovano FXStreet

Further downside in USD/JPY is not ruled out although decent contention is expected in the 106.20 area, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘dip to 106.50’ did not materialize as it recovered from a low of 106.70. Momentum indicators are mostly neutral and for today, USD is expected to trade sideways, likely between 106.85 and 107.35.”

Next 1-3 weeks: “We have held the same view since last Wednesday (15 Jul, spot at 107.25) wherein the outlook for USD is mixed and it ‘could trade between 106.70 and 107.70 for a while’. After trading in a quiet manner for about a week, USD dipped below the bottom of the expected range yesterday (low of 106.67). Downward momentum has ticked up and from here, USD could drift lower but in view of the nascent buildup in momentum, any weakness may struggle to move below 106.25. On the upside, only a break above 107.50 would indicate the current mild 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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