USD/JPY: short-term top in place? – UOB

Pablo Piovano FXStreet

According to FX Strategists at UOB Group, there is the chance that USD/JPY could have topped around 108.50.

Key Quotes

24-hour view: “Expectation for USD to “trade sideways” last Friday was incorrect as it dropped sharply to 107.51. Despite the subsequent bounce from the low, the underlying tone remains weak. From here, barring a move back above 108.00 (minor resistance at 107.80), USD could weaken further to 107.30. For today, the next support at 107.00 is not expected to come into the picture”.

Next 1-3 weeks: “The sharp drop of -0.41% last Friday (NY close 107.55) has increased the risk of a short-term top. However, only a break of 107.50 (no change in ‘strong support’ level) would indicate that the recovery phase that started more than 2 weeks ago has run its course. In other words, a break of 107.50 would suggest that last Wednesday (18 Sep) high of 108.47 is a short-term top. From here, unless USD can move stay above 108.00 by end of today’s NY session, a break of 107.50 would not be surprising. Looking ahead, a breach of 107.50 would indicate the start of a consolidation phase and USD would then likely to trade sideways to slightly lower for a period”.

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 remains bid, focus stays on 1.1900

EUR/USD has broken its two-day run of losses and is ticking modestly higher on Thursday, hovering around the 1.1880 area as the US Dollar struggles to find clear direction. Weekly Initial Jobless Claims rose more than expected, taking a bit of shine off the Greenback, but markets are largely in wait-and-see mode ahead of Friday’s US CPI release.

GBP/USD sticks to the bid bias, still below 1.3700

GBP/USD is trading with decent gains around 1.3650 on Thursday. Indeed, Cable is attempting to shake off the weakness seen earlier in the week amid another choppy session for the Greenback, while a run of disappointing UK data has so far failed to derail the pair’s tentative recovery.