Weakness in The US Dollar (USD) appears to be stabilising; a breach of 155.00 would indicate that USD is not declining further, UOB Group FX strategists Quek Ser Leang and Peter Chia note.
USD/JPY reaches out to test 155.00
24-HOUR VIEW: “Yesterday, we expected USD to trade in a range between 153.20 and 154.70. USD subsequently traded in a 153.00/154.35 range, closing at 154.01 (+0.19%). The price action provides no fresh clues, and we continue to expect USD to trade in a range, likely between 153.30 and 154.70.”
1-3 WEEKS VIEW: “Our update from last Friday (26 Jul, spot at 153.50) still stands. As highlighted, the weakness in USD that started in the middle of the month appears to be stabilising. However, only a breach of 155.00 (no change in ‘strong resistance’) would indicate USD is not declining further.”
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