Home USD/JPY now looks to 105.00-106.00 – UOB
FXStreet News

USD/JPY now looks to 105.00-106.00 – UOB

USD/JPY remains within a consolidation mood between 105.00 and 106.00 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to move higher yesterday but were of the view that ‘any advance is viewed as part of a higher trading range of 105.25/105.75 (a sustained advance above 105.75 is not expected)’. Our view was not wrong as USD rose to a high of 105.79 before closing on a relatively firm note at 105.72 (+0.37%). Further USD strength is not ruled out but overbought conditions suggest that a move beyond the major resistance at 106.00 is unlikely. On the downside, a break of 105.45 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Last Friday (02 Oct, spot t 105.55), we indicated that USD ‘is likely to trade between 105.00 and 106.00 for now’. USD subsequently dropped to a low of 104.92 before rebounding quickly and closed slightly lower at 105.33 (-0.16%). Momentum indicators are still mostly ‘neutral’ and the price actions indicate that USD could trade between 105.00 and 106.00 for a while more. Looking forward, USD has to post a daily closing out of the 105.00/106.00 range before a more sustained directional movement can be expected.”

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.