Prospects of further downside appear dissipated and USD/JPY is now likely to trade within a consolidative fashion, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “After trading on a relatively firm note for several days in a row, the sudden and sharp drop in USD to a low of 109.52 came as a surprise. The recent positive momentum has or less dissipated and the bias for USD is tilted to the downside. That said, any weakness is likely limited to a test of 109.30 (next support is at 109.00). Resistance is at 109.90 followed by 110.10.”
Next 1-3 weeks: “As highlighted, USD is expected to trade sideways for a period, likely between two major levels of 108.30 and 110.30. While the top of the expected range is within sight, at this stage, there is no early indication that USD is ready to move above this level in a sustained manner.”
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