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According to FX Strategists at UOB Group, USD/JPY could well breach the 105.00 key support in the near term.

Key Quotes

24-hour view: “As cited in our last update on 8-Aug, we were ‘unclear whether USD has made its interim low (at 105.48)’ and true enough USD printed a new low of 105.03 on Mon. However, downside momentum has not caught up with the move so although the undertone is still negative, a strong sustained down move is not expected today. That said, 105.00 continues to be a strong support level together with 104.75. On the topside, resistances are at 105.55 and 105.95″.

Next 1-3 weeks: “Our last narrative was for key support at 105.50 and Jan’s flash crash low of 104.96 to “quickly come into focus” should 106.00 be taken out. Despite a strong bounce to 107.07 on 6-Aug, sellers were quick to sell into the rally and USD even printed a new low of 105.03 overnight (12-Aug). With the move, it is clear that downside momentum is rebuilding and a subsequent break below 105.00 in the next couple of days would not come as a surprise. In the last session sessions, USD On the upside, resistance is expected at 107.10 and only a recovery above 107.90 would indicate that downside pressures on the USD have eased.” Below 105.00, stiff support can be expected at March 2018’s key cycle low of 104.55. On the topside, expect resistance at 106.50 and 107.20″.