USD/JPY: To trade between 148.80 and 150.70 – UOB Group

FXStreet Insights Team FXStreet

Outlook is unclear; US Dollar (USD) could trade between 148.80 and 150.70 vs Japanese Yen (JPY). In the longer run, failure to hold below 148.50 suggests USD could enter a period of indecision, trading in a 148.00/151.50 range for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD can enter a period of indecision

24-HOUR VIEW: USD traded in a volatile manner on Monday. Yesterday, we indicated that 'the outlook is unclear after the choppy price action,' and we expected USD to 'trade in a broad range between 148.50 and 150.50.' USD subsequently traded in a volatile manner, dropping to a low and then reversing sharply to reach 149.88. We are still unable to derive much out of the choppy price movements. Today, USD could trade between 148.80 and 150.70."

1-3 WEEKS VIEW: "Yesterday (04 Mar, spot at 149.45), we highlighted that 'the bias for USD is slightly tilted to the downside, but it is unclear for now whether it can break and stay below 148.50.' USD subsequently dropped below 148.50, but it rebounded strongly to close at 149.80 (+0.20%). The failure to hold below 148.50 suggests USD could enter a period of indecision, trading in 148.00/151.50 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 posts modest gains above 1.1650 amid weaker US Dollar

EUR/USD posts modest gains above 1.1650 in the European session on Monday. The prospect of a US Federal Reserve rate cut at its December meeting on Wednesday keeps the US Dollar undermined across the board, supporting the pair amid strong German Industrial Production data. Eurozone Sentix Investor Confidence data is next in focus.

GBP/USD consolidates above 1.3300 as traders await Fed rate decision

GBP/USD kicks off the new week on a subdued note and oscillates in a narrow trading band above 1.3300 in European trading on Monday. The pair, however, remains close to the highest level since October 22, with bulls awaiting a sustained strength on a potential dovish Fed verdict due later this Wednesday.

Gold holds firm above $4,200; awaits Fed rate decision on Wednesday before the next leg up

Gold sticks to its modest intraday gains through the early European session, though it lacks bullish conviction and remains confined in a one-week-old trading range. The growing acceptance that the US Federal Reserve will lower borrowing costs again this week keeps the US Dollar depressed near a one-month low and acts as a tailwind for the non-yielding yellow metal.

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.