There’s scope for US Greenback (USD) to proceed to weaken towards Japanese Yen (JPY); the key assist at 142.10 is unlikely to return underneath menace. Within the longer run, value motion means that USD continues to be buying and selling in a spread, more than likely between 142.10 and 145.50, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
USD/JPY is about to proceed weakening
24-HOUR VIEW: ” In wake of the robust rebound in USD two days in the past, we acknowledged yesterday that ‘the sharp rebound seems to be extreme, and any additional rebound is probably going half of a better vary of 143.30/144.30 as a substitute of a sustained advance.’ USD then rose above 144.30 (excessive of 144.38) after which in a sudden transfer through the NY session, plummeted to a low of 142.58. This time round, the sharp decline seems to be extreme. Nevertheless, there may be scope for USD to proceed to weaken, despite the fact that the key assist at 142.10 is unlikely to return underneath menace (there may be one other assist at 142.35). Resistance is at 143.00; a breach of 143.40 would recommend that the weak spot has stabilised.”
1-3 WEEKS VIEW: “Our replace from yesterday (04 Jun, spot at 143.85) stays legitimate. As highlighted, the current value motion ‘suggests USD continues to be buying and selling in a spread, more than likely between 142.10 and 145.50’.”
