US Greenback (USD) may break beneath 146.60 in opposition to Japanese Yen (JPY); the foremost assist at 145.80 is unlikely to become visible. Within the longer run, sharp drop in USD has scope to increase, however any decline might not break beneath 145.80, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Sharp drop in USD has scope to increase
24-HOUR VIEW: “After the sharp selloff in USD final Friday, we indicated yesterday that ‘though additional USD weak spot appears possible, situations are deeply oversold, and it stays to be seen whether or not USD can attain the 146.60.’ We identified that ‘resistance ranges are at 147.65 and 148.50.’ USD subsequently rose to 148.08 earlier than dropping to a low of 146.85 within the late NY session. Whereas situations stay oversold, the buildup in downward momentum may result in USD breaking beneath 146.60 right now. The key assist stage at 145.80 is unlikely to become visible (there’s one other assist stage at 146.30). Right now’s resistance ranges are at 147.30 and 147.60.”
1-3 WEEKS VIEW: “We highlighted yesterday (04 Aug, spot at 147.25) that the sharp drop in USD from final Friday ‘has scope to increase.’ Nevertheless, we identified that ‘any decline might not break beneath 145.80.’ We are going to preserve the identical view so long as lengthy 149.00 (‘sturdy resistance’ stage was at 149.50 yesterday) just isn’t breached.”
