Additional US Greenback (USD) weak spot appears doubtless in opposition to Japanese Yen (JPY); it stays to be seen whether or not it could possibly attain 146.60. Within the longer run, sharp drop in USD has scope to increase, however any decline might not break under 145.80, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Any decline might not break under 145.80
24-HOUR VIEW: “USD traded in a risky method final Friday, plunging to a low of 147.28 earlier than closing sharply decrease by a whopping 2.24% (147.36). Though additional USD weak spot appears doubtless, situations are deeply oversold, and it stays to be seen whether or not USD can attain the 146.60. Based mostly on the oversold situations, the key assist at 145.80 is unlikely to come back beneath risk. Resistance ranges are at 147.65 and 148.50.”
1-3 WEEKS VIEW: “After holding a optimistic USD view for a number of days, in our earlier replace from final Thursday (31 Jul, spot at 149.30), we indicated that ‘USD view stays optimistic, and the main target now’s at 150.00.’ We added, ‘if USD breaks under the ‘robust assist’ at 148.20, it will point out that it’s not rising additional.’ On Friday, USD rose to a excessive of 150.91, after which in a dramatic reversal, it plunged and closed down by an outsized 2.24% (NY shut of 147.36), marking its largest one-day drop since Dec 2023. The sharp drop has scope to increase, however any decline might not break under 145.80. On the upside, a breach of 149.50 would point out that the present downward strain has eased.”
