Further losses in USD/JPY still appear in store for the time being, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
24-hour view: Two days ago, USD plummeted to 145.89 and then rebounded. Yesterday, we highlighted that “the strong rebound in oversold conditions suggests USD is unlikely to weaken further.” We expected USD to trade in a range between 146.00 and 147.30. However, USD traded in a narrower range than expected (146.44/147.24). The underlying tone seems to have improved somewhat. Today, USD could edge higher, but it is unlikely to reach 147.80. On the downside, if USD breaks below 146.60 (minor support is at 146.85), it would mean that the current mild upward pressure has faded.
Next 1-3 weeks: Yesterday (12 Sep, spot at 146.70), we highlighted that USD could pullback further. We added, “the likelihood of a clear break below 145.50 is not high.” We continue to hold the same view. On the upside, if USD breaks above 147.80, it would indicate that it is not ready to pullback further.
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 should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.