USD/JPY: Likely to trade in a range between 149.00 and 150.50 – UOB Group
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Instead of continuing to decline, US Dollar (USD) is more likely to trade in a range between 149.00 and 150.50 vs Japanese Yen (JPY). In the longer run, USD appears to have moved into a 148.40/151.00 consolidation range, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD appears to have moved into a consolidation range
24-HOUR VIEW: "Yesterday, USD fell to a low of 148.68 and then staged a strong and sharp rebound to close largely unchanged at 149.95 (+0.09%). The rebound in oversold conditions suggest instead of continuing to decline, USD is more likely to trade in a range today, probably between 149.00 and 150.50."
1-3 WEEKS VIEW: "Last Wednesday, 26 Mar, when USD was at 149.90, we highlighted that 'while there is scope for USD to rise further, it may find the 151.00/151.30 resistance zone difficult to break.' After USD rose to a high of 151.15, in our latest update from last Friday (28 Mar, spot at 151.00), we highlighted that 'if USD breaks and holds above 151.30, it could trigger additional gains toward 152.30.' USD did not break above 151.30, but instead, it fell and broke below our ‘strong support’ level at 149.50 yesterday. USD appears to have moved into a consolidation phase. For the time being, we expected USD to trade in a 148.40/151.00 range."
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