According to UOB Group’s FX Strategists, a move to the 111.35 level in USD/JPY presently appears to be losing traction.
Observation for 24 hours: “Last Friday, we predicted that the dollar would ‘edge higher,’ but it fell to 110.47 before rebounding. The price movements have produced a mixed outlook, with the USD trading between 110.50 and 111.00 today.”
Within the next 1-3 weeks: “Last Thursday (24 June, spot at 111.00), we predicted that the US dollar would ‘likely climb higher to 111.35.’ ‘The current favorable outlook is considered intact as long as the USD does not fall below 110.40,’ we added. Last Friday, the US dollar fell to 110.47 before immediately rebounding. The USD’s upward momentum has been stifled, and the chances of it reaching 111.35 have lessened. USD must move and stay above 111.00 within the next 1 to 2 days to resurrect the flagging momentum, otherwise a breach of 110.40 (no change in’strong support’ level) would not be surprising.”
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