USD/JPY: Shrinking bets for a drop below 127.50 – UOB

Pablo Piovano FXStreet

According to Lee Sue Ann and Quek Ser Leang, FX Strategists at UOB Group, bets for a breach of the 127.50 level in USD/JPY appear to be losing impulse so far.

Key Quotes

24-hour view: “USD traded sideways between 128.68 and 129.63 yesterday before closing largely unchanged (129.16, -0.02%). The price actions are likely part of a consolidation and USD could continue to trade sideways. Expected range for today, 128.70/129.65.”

Next 1-3 weeks: “Our latest narrative was from last Thursday (12 May, spot at 128.80) where USD is likely to trade above 127.50 for a couple of days before staging a deeper pullback. USD traded mostly sideways the last couple of days. Downward pressure is easing and the chance for USD to move below 127.50 has diminished. That said, only a breach of 129.90 would indicate that the downside risk has dissipated.”

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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