In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research, USD/JPY could now slip back to the 143.00 region in the next few weeks.
Key Quotes
24-hour view: “Our view for USD to ‘trade sideways between 144.20 and 145.15’ yesterday was incorrect. USD dropped to a low of 143.88 before extending its decline in early Asian trade. Downward momentum is building rapidly and the risk is for USD to break 143.50. However, USD is unlikely to challenge the next major support at 143.00. On the upside, 144.55 is likely strong enough to cap any intraday rebound (minor resistance is at 144.20).”
Next 1-3 weeks: “Two days ago (03 Oct, spot at 144.70), we highlighted that the recent build-up in upward momentum has fizzled out and we expected USD to trade between 143.50 and 145.60. Yesterday, USD dropped to a low of 143.88 before extending its decline today. Short-term downward momentum is building and we expect USD to trade with a downward bias towards 143.00 in the coming days. Our view will be invalidated if USD breaks above the ‘strong resistance’ level, currently at 144.90.”
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