USD/JPY risks a deeper drop near term – UOB
|Further losses in USD/JPY still appear in store for the time being, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: Two days ago, USD plummeted to 145.89 and then rebounded. Yesterday, we highlighted that “the strong rebound in oversold conditions suggests USD is unlikely to weaken further.” We expected USD to trade in a range between 146.00 and 147.30. However, USD traded in a narrower range than expected (146.44/147.24). The underlying tone seems to have improved somewhat. Today, USD could edge higher, but it is unlikely to reach 147.80. On the downside, if USD breaks below 146.60 (minor support is at 146.85), it would mean that the current mild upward pressure has faded.
Next 1-3 weeks: Yesterday (12 Sep, spot at 146.70), we highlighted that USD could pullback further. We added, “the likelihood of a clear break below 145.50 is not high.” We continue to hold the same view. On the upside, if USD breaks above 147.80, it would indicate that it is not ready to pullback further.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.