USD/JPY to test 152.25 before the risk of a pullback increase – UOB Group

FXStreet Insights Team FXStreet

There is scope for US Dollar (USD) to test 152.25 before the risk of a pullback increases. In the longer run, outlook is mixed; USD could trade between 150.00 and 153.00 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD might trade between 150.00 and 153.00 for now

24-HOUR VIEW: "Our view for USD to 'trade in a sideways range of 150.00/151.00' turned out to be incorrect, as USD soared and reached a high of 152.17. The sharp rise appears excessive, but there is scope for USD to test 152.25 before the risk of a pullback increases. We do not expect the major resistance at 153.00 to come into view. On the downside, if USD breaks below 151.10 (minor support is at 151.40), it would mean that USD is more likely to range-trade rather than testing 152.25."

1-3 WEEKS VIEW: "In our latest update from last Friday (17 Oct, spot at 150.15), we indicated that 'the odds of USD breaking clearly below 149.50 are increasing.' USD subsequently dropped to a low of 149.36 before rebounding strongly. Yesterday (21 Oct, spot at 150.55), we highlighted that 'downward momentum has slowed, but as long as the ‘strong resistance’ level at 151.35 is not breached, there is a chance for USD to retest the 149.35 level.' We did not expect USD to break above 151.35, as it soared to a high of 152.17. The recent sharp but short-lived swings have resulted in a mixed outlook, and USD could trade between 150.00 and 153.00 for now."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD trims intraday gains, stays flat around 1.1630

EUR/USD struggles to find direction and trades in a narrow channel on Monday. Investors refrain from taking large positions ahead of this week's critical Fed policy meeting, allowing the pair to stay in a consolidation phase following two consecutive weeks of bullish action. US Dollar gains ground as risk aversion kicks in.

GBP/USD edges lower toward 1.3300 as markets turn cautious

GBP/USD corrects lower toward 1.3300 on Monday after posting gains in the previous week. The markets adopt a cautious stance ahead of the highly-anticipated Fed meeting, making it difficult for the pair to gather bullish momentum.

Gold remains seases below $4,200 as markets gear up for Fed

Gold turned south after Wall Street's opening, trading south of $4,200. The US Dollar finds additional legs on a souring mood on Monday as market participants prepare for the upcoming Fed meeting, which will provide key insights into the short-term policy outlook.

Bitcoin and Ethereum aim for breakouts as Ripple holds at $2

Bitcoin, Ethereum, and Ripple record a minor recovery on Monday, starting the week on a positive note. The retail demand for major cryptocurrencies remains strong despite outflows from Bitcoin and Ethereum Exchange Traded Funds.

The Silver disconnection is real

Silver just hit a new all-time high. Neither did gold, nor mining stocks. They all reversed on an intraday basis, but silver’s move to new highs makes it still bullish overall, while the almost complete reversals in gold and miners make the latter technically bearish.