USD/JPY now shifted its interest to the 104.80 degree for the time being, mentioned FX Strategists at UOB Group.
24-hour view: “We anticipated USD to ‘trade between 105.25 and 105.75’ yesterday. However, it dropped to 105.14 earlier than closing on a smooth notice at 105.22 (-0.13%). Downward momentum has improved, albeit no longer with the aid of much. From here, there is room for USD to part decrease however any weak spot is not going to smash the sturdy assist at 104.80 (there is any other guide at 105.00). Resistance is at 105.35 accompanied via 105.60.”
Next 1-3 weeks: “We have held a fine view in USD for the reason that late closing month. Our brand new narrative used to be from ultimate Friday (05 Feb, spot at 105.50) the place we highlighted that ‘further USD power is probable and the subsequent stage to center of attention on is at 106.00’. USD consequently rose to 105.76 however has because retreated sharply. Upward momentum has been dented and a smash of 104.80 (no alternate in ‘strong support’ level) would point out that 106.00 is out of attain this time round. In order to rejuvenate the flagging momentum, USD has to pass and remain above 105.60 inside these 1 to two days or a wreck of 104.80 would no longer be surprising.