USD / JPY Still expected to move to the 110.40 zone in the coming weeks, FX Strategists at UOB Group suggested.
Viewed 24 hours a day: “We stressed yesterday that” a new strength of the USD seems unlikely “and added:” The dollar is more likely to consolidate and trade between 108.40 and 109.30 “. The USD then moved between 108.65 and 109.27, narrower than our expected range. Price action is always considered to be part of a consolidation phase. However, the slightly weaker underlying tone suggests a lower trading range of 108.35 / 109.20 for today. “
Next 1-3 weeks: “We pointed out last Friday (April 03, spot at 108.00) that” the risk of short-term trough has increased “. The break in the “high resistance” level of 108.75 earlier this morning indicates that last Tuesday’s low (April 01) at 106.89 is a short-term low. The short-term bias is that the USD tests the 110.40 level from here. A clear break from this level would indicate that the USD could extend to last month’s high at 111.71. On the downside, only a break of 107.30 (“solid support” level) would indicate that the current upward pressure has eased. “