UOB Group’s FX Strategists noted USD/JPY could now head towards the vicinity of the key 110.00 yardsticks within the next weeks.
24-hour view: “We highlighted last Friday that ‘there is that the chance for USD to check the main resistance at 109.30’. We added, ‘a clear break of this level is unlikely and therefore the next resistance at 109.60 isn’t expected to return into the picture’. Our view wasn’t wrong as USD rose to 109.36 before closing on a firm note at 109.27 (+0.33%). Upward momentum remains strong and further advance wouldn’t be surprising albeit overbought conditions could ‘limit’ any gains to a test of 109.60. A move to subsequent major resistance at 109.95 would come as a surprise. Support is at 109.00 but the stronger level is at 108.75.”
Next 1-3 weeks: “We turned positive on USD last Wednesday (28 Apr, spot at 108.80) where we indicated that USD ‘is expected to trade with an upward bias towards 109.30’. Our view wasn’t wrong as USD rose to 109.36 on Friday. While upward momentum has not improved by much, the upward bias remains intact. subsequent resistance is at 109.60 followed by a serious level at 109.95. On the downside, a breach of 108.55 (‘strong support’ level previously at 108.20) would indicate that the positive phase has ended.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and will not in any way encounter as a recommendation to shop for or sell in these assets. you ought to do your own thorough research before making any investment decisions. FXStreet doesn’t in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also doesn’t guarantee that this information is of a timely nature. Investing in Open Markets involves an excellent deal of risk, including the loss of all or some of your investment, also as emotional distress. All risks, losses, and costs related to investing, including total loss of principal, are your responsibility. The views and opinions expressed during this article are those of the authors and don’t necessarily reflect the official policy or position of FXStreet nor its advertisers.