A sustained decline seems most likely beneath 148.90 – UOB
Additional losses in USD/JPY seems at the playing cards as soon as 148.90 is breached, in step with UOB Staff’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: We indicated closing Friday that “so long as USD remains beneath 151.30, it would weaken however is not going to wreck obviously beneath 150.10.” The expected USD weak point exceeded our expectancies as USD broke beneath 150.10 and plummeted to a low of 149.12. USD rebounded from the low, and this mixed with oversold prerequisites suggests USD is not going to weaken additional. Lately, USD is much more likely to industry in a variety, almost certainly between 149.40 and 150.60.
Subsequent 1-3 weeks: After USD pulled again early closing week, we highlighted closing Wednesday (15 Nov, spot at 150.55) that “the hot buildup in upward drive has light”, and we anticipated USD to industry in a variety of 149.50/151.65. On Friday, USD broke beneath 149.50 earlier than rebounding briefly from a low of 149.18. The rise in downward momentum isn’t sufficient to signify that USD is able to head decrease in a sustained means. USD should wreck obviously beneath the key give a boost to close to 148.90 earlier than a sustained decline is most likely. So long as USD does no longer wreck above 151.10 in the following couple of days, the chance of a transparent wreck beneath 148.90 will stay in position.
