US Greenback (USD) may drop under 144.90 in opposition to Japanese Yen (JPY); the foremost help at 144.50 is unlikely to return underneath menace. Within the longer run, USD stays in consolidation, however seemingly inside a tighter vary of 144.50/147.30, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
USD stays in consolidation
24-HOUR VIEW: “We anticipated USD to ‘grind decrease and take a look at 144.95’ final Friday. Nevertheless, we indicated that ‘a sustained break under this stage appears unlikely.’ We added, ‘The main help at 144.50 can be unlikely to return underneath menace.’ USD edged to a low of 144.90 within the early London session, rebounding to shut largely unchanged at 145.62 (-0.03%). USD traded on a comfortable observe in early Asian commerce right now. Downward momentum is constructing, and USD may drop under 144.90. Nevertheless, the foremost help at 144.50 is unlikely to return underneath menace. Resistance is at 145.80, adopted by 146.30.”
1-3 WEEKS VIEW: “In our replace from final Thursday (15 Could, spot at 146.80), we indicated that USD ‘has seemingly entered a consolidation part.’ We anticipated USD to ‘commerce in a spread of 144.50/148.50.’ USD stays in a consolidation, however we now tighten the vary to 144.50/147.30. Trying forward, ought to USD break clearly under 144.50, it may set off a deeper decline.”
