Sharp fluctuations have resulted in a blended outlook; US Greenback (USD) may proceed to fluctuate in opposition to Japanese Yen (JPY), probably between 147.50 and 148.80. Within the longer run, USD energy has paused for now; it’s anticipated to commerce in a spread of 146.90/149.20, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
USD energy has paused for now
24-HOUR VIEW: “Subsequent to the sharp rally in USD on Tuesday, we indicated the next yesterday: ‘Situations are deeply overbought, and as we speak, whereas there’s room for USD to rise additional, a sustained break above 149.30 is unlikely.’ We didn’t anticipate the unstable worth actions, as after rising to a excessive of 149.18, USD plunged to 146.90 earlier than snapping again as much as shut at 147.86 (-0.67%). The sharp fluctuations have resulted in a blended outlook. At present, USD may proceed to fluctuate, probably between 147.50 and 148.80.
1-3 WEEKS VIEW: “We turned optimistic on USD early final week (see annotations within the chart beneath). After USD soared to a excessive of 149.01 two days in the past, we identified yesterday (16 Jul, spot at 148.80) that ‘though circumstances stay overbought, robust momentum might proceed to hold USD greater.’ We added, ‘the following stage to observe is 149.80 and to maintain the overbought momentum, USD should maintain above 147.65 (‘robust resistance’ stage).’ We didn’t anticipate USD to plunge briefly to 146.90 and the next sharp rebound. The breach of our ‘robust assist’ stage signifies USD energy has paused for now. From right here, we anticipate USD to commerce in a spread of 146.90/149.20.”
