Dollar/yen has come under pressure as the coronavirus is spreading all over the world. How far can the safe-haven Japanese yen go?
Here is their view, courtesy of eFXdata:
UOB Research discusses USD/JPY technical outlook and shifts its tactical bias to downside in the near-term.
“The breach of 109.45 (low: 109.25) overnight has indicated that the current USD strength has run its course and the risk now shifts to the downside. The next strong support is at 109.15 followed by the big figure 109.00 which is unlikely to come into the picture as yet,” UOB notes.
“On the topside, immediate resistance is in the vicinity of overnight highs at 109.86 and only a further recovery above 110.00 would indicate that the current phase of weakness has ended,” UOB adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.