USD/JPY seen within 107.78/108.10 – UOB

Pablo Piovano FXStreet

In view of FX Strategists at UOB Group, USD/JPY should keep the consolidation unchanged in the short-term horizon, likely between 107.78 and 108.10.

Key Quotes

24-hour view: “Our expectation for USD to “extend its decline and test the strong support at 107.50” did not materialize as it traded in relatively muted manner and within a tight range of 107.78/108.10. Momentum indicators have turned mostly ‘neutral’ with the quiet price action and USD is likely to continue to trade sideways. Expected range for today, 107.70/108.10”.

Next 1-3 weeks: “Despite the relative sharp decline last Friday (107.89, -0.54%), we continue to hold the same view as from last Thursday (11 Jul, 108.30) wherein USD is expected to trade sideways within a relatively broad 107.50/108.95 range. A test of the bottom of the range would not be surprising but a sustained decline below the next support at 107.20 is unlikely”.

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.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.