USD/JPY sticks to the consolidative range so far – UOB
According to UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang, USD/JPY should maintain the 130.50-134.50 range for the time being.
Key Quotes
24-hour view: “We highlighted yesterday that ‘Flat momentum indicators suggest further sideways trading, likely between 131.60 and 132.75’. USD subsequently traded within a narrower range of 132.05/132.87 but it opened on a soft note in early Asian trade. Downward momentum is beginning to build and USD is likely head lower. However, a sustained decline below 131.30 appears unlikely (next support is at 130.50). Resistance is at 132.30, a breach of 132.70 would indicate the build-up in downward momentum has fizzled out.”
Next 1-3 weeks: “There is not much to add to our update from Monday (09 Jan, spot at 132.10). As highlighted, after the sharp drop last Friday, USD is likely to trade within a broad range of 130.50 and 134.50 instead of rebounding further.”
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.
