There may be scope for US Greenback (USD) to edge decrease to 143.80 vs Japanese Yen (JPY); a sustained break beneath this degree appears unlikely. Within the longer run, the bias for USD is on the draw back towards 143.80, doubtlessly to 143.30, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
USD/JPY can doubtlessly fall to 143.30
24-HOUR VIEW: “Subsequent to USD worth motion on Monday, we highlighted yesterday, Tuesday that ‘There was no additional improve in downward momentum, and as a substitute of weakening right this moment, USD is extra prone to commerce between 144.60 and 145.70.’ Our evaluation was incorrect. USD rose to 145.51, dropped to 144.07 after which rebounded to shut at 144.50, decrease by 0.24%. We nonetheless don’t detect a major improve in downward momentum. Nevertheless, there may be scope for USD to edge decrease to 143.80. A sustained break beneath this degree appears unlikely. The subsequent help at 143.30 can also be unlikely to come into sight. Resistance is at 144.75, adopted by 145.10.”
1-3 WEEKS VIEW: “We’ve anticipated USD to consolidate since final week. In our newest narrative from two days in the past (19 Mays, spot at 145.30), we indicated that USD ‘stays in a consolidation, however we now tighten the vary to 144.50/147.30.’ Yesterday, USD dropped beneath 144.50, reaching a low of 144.07. Regardless of the decline, there was no vital improve in downward momentum. That stated, the bias for USD is on the draw back towards 143.80, doubtlessly reaching 143.30. To keep up the momentum, USD should stay beneath 145.80.”
