USD/JPY under pressure below 113.55 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group stay neutral on the pair, which should remain under pressure while below the mid-113.00s.

Key Quotes

“Expectation for a stronger recovery was clearly wrong as USD plummeted to a low of 112.24 last Friday. With no signs of stabilization just yet, another push lower to test the major 112.00 support seems likely (next support at 111.70). This is a rather strong level and a clear break is not expected. Resistance is at 112.85 but stabilization is only upon a move back above 113.05”.

“USD registered a low of 114.24 last Friday, holding above the bottom of our expected 112.00/114.20 sideway trading range. The rapid pace of decline has resulted in a swift pick-up in downward momentum and from here, USD is expected to stay under pressure unless it can reclaim 113.55 in the next few days. That said, 112.00 is a strong support and may not yield so easily and this level is followed closely by another strong support at 111.70”.

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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