#USDJPY @ 146.317 : Downward momentum seems to be shaping up – UOB
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According to Market Strategist at UOB Group Quek Ser Leang and Economist Lee Sue Ann, USD/JPY risks further decline in the near term, although a sustained pullback below 144.00 appears not favoured.
24-hour view: “Yesterday, we highlighted that USD ‘is likely to edge lower but any decline is likely limited to a test of 147.00’. We did not expect the downward acceleration as USD plummeted to a low of 146.21 before extending its decline in early Asian trade. While oversold, the USD weakness could extend. However, a sustained drop below 145.00 is unlikely (minor support is at 145.40). Resistance is at 146.55 but only a break of 147.00 would indicate that the weakness in USD has stabilized.”
Next 1-3 weeks: “In our latest narrative from two days ago (25 Oct, spot at 148.80), we highlighted the outlook for USD is mixed and USD could trade within a wide range of 144.00/152.00 for the time being. Yesterday (26 Oct), USD lost 1.05% (NY close of 146.35) and downward momentum is building, albeit tentatively. In the coming days, USD could edge lower but at this stage, the odds of a sustained decline below 144.00 are not high. On the upside, a break of the ‘strong resistance’ level at 148.80 would indicate the build-up in momentum has fizzled out.”
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