USD/JPY Expected to Trade Sideways, Potential for Further Downside
UOB Group analysts predict the USD/JPY pair will trade within a range of 144.50/147.50 in the near term.
Although the pair surged to 147.89 yesterday before retracing, the overall weakness in the USD persists as long as the strong resistance level at 148.30 remains unbroken.
Key Insights:
- 24-Hour View: UOB Group anticipates sideways trading today, within the 144.50/147.50 range.
- 1-3 Weeks View: The bearish outlook for USD/JPY continues, with the next major support at 140.80. However, it's uncertain if the pair will reach this level. The critical resistance to watch is 148.30.
Market Implications:
Traders should be prepared for range-bound movement in the short term. A break below 144.50 could signal further downside towards 140.80. Conversely, a breach above 148.30 would invalidate the bearish outlook and potentially lead to an upward trend.