Scope for US Greenback (USD) to weaken additional vs Japanese Yen (JPY); any decline is probably going a part of a decrease vary of 142.10/143.45. Within the longer run, threat continues to be on the draw back, however it stays to be seen if USD can preserve its tempo of decline. The extent to watch is 141.70, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Danger continues to be on the draw back
24-HOUR VIEW: “Final Friday, we anticipated USD to consolidate between 143.40 and 144.70. Nevertheless, USD fell and reached 142.41. Regardless of the decline, downward momentum has not elevated considerably. Right now, whereas there’s scope for USD to weaken additional, any decline is probably going a part of a decrease vary of 142.10/143.45. In different phrases, USD is unlikely to interrupt clearly beneath 142.10.”
1-3 WEEKS VIEW: “We revised our USD to unfavourable in the course of final week. On Friday (23 Could, spot at 143.95), we highlighted the next: ‘Whereas additional declines stay potential, deeply oversold circumstances and tentative slowing of downward momentum might first result in consolidation. That mentioned, yesterday’s low close to 142.80, is now appearing as a robust help degree. On the upside, a break above 145.05 (‘sturdy resistance’ degree) would point out a broader and longer consolidation section.’ We didn’t anticipate USD to shortly resume its decline, dropping to a low of 142.41. The chance continues to be on the draw back, however it stays to be seen whether or not USD can preserve the present tempo of decline. The extent to watch is 141.70. On the upside, a breach of 144.00 (‘sturdy resistance’ degree beforehand at 145.05) would recommend the weak spot has stabilised.”
