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Further weakness in USD/JPY should meet contention in the 102.60 area, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD closed little changed last Thursday (31 Dec) but weakened after opening this morning. Downward momentum is showing sign of improving and the bias is tilted to the downside. That said, 102.85 is a solid support and this level is unlikely to yield so easily (next support is at 102.60). Resistance is at 103.25 but the stronger level is at 103.45.”

Next 1-3 weeks: “USD traded between 102.86 and 103.89 for the past two weeks or so. While downward momentum has improved somewhat and the risk of a break of 102.86 has increased, any weakness is likely limited to 102.60. On the upside, a break of 103.65 would indicate that the current mild downward pressure has eased.”