- Analytics
- News and Tools
- Market News
- USD/JPY: Downward momentum picks up pace – UOB
USD/JPY: Downward momentum picks up pace – UOB
In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, USD/JPY risks sustained pullbacks on a break below 138.50.
Key Quotes
24-hour view: The spike in volatility in USD came as a surprise. After soaring to a high of 141.31 in NY trade, USD reversed and nose-dived to a low of 138.76. The sharp decline appears to be overdone, but there is a chance for USD to test the critical support at 138.50. At this stage, it is unclear if USD can maintain a foothold below this level. Resistance is at 140.00, followed by 140.60.
Next 1-3 weeks: Yesterday (27 Jul, spot at 140.40), we noted that the recent upward pressure had eased. We expected USD to consolidate and trade in a range of 138.50/141.95. In NY trade, USD rose to 141.31 before selling off sharply to 138.76. Momentum is beginning to build again, but USD must break clearly below the critical support at 138.50 before further weakness is likely. The likelihood of USD breaking clearly below 138.50 will remain intact as long as it stays below 141.30 in the next couple of days. Looking ahead, the next level to watch below 138.50 is Jul’s low near 137.25.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
