USD/JPY: Upward momentum alleviated below 146.85 – UOB

USD/JPY: Upward momentum alleviated below 146.85 – UOB

USD/JPY could see its upside bias mitigated on a breach of the 146.85 level, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: Last Friday, USD rose to a high of 147.96. Yesterday, we indicated that “despite the advance, upward momentum has not improved by much”, and we expected it to grind higher. Instead of grinding higher, USD traded sideways in a relatively narrow range between 147.54 and 147.87. The price action is likely part of a consolidation phase. Today, USD is likely to trade in a range, probably between 147.35 and 147.90. 

Next 1-3 weeks: Our update from yesterday (18 Sep, spot at 147.80) is still valid. As highlighted, upward momentum has increased slightly, and USD could edge higher. At this stage, the likelihood of a sustained rise above this level is not high. On the downside, if USD breaks 146.85 (no change in ‘strong support’ level from yesterday) would indicate that the mild upward pressure has eased. 

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.

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *