According to FX Strategists at UOB Group, USD/JPY faces greater losses on a shut under 114.30.
Key Quotes
24-hour view: “We highlighted the day gone by that ‘the underlying tone nevertheless seems to be on the gentle aspect and we proceed to see danger for USD to dip beneath 115.00’. Instead of dipping beneath 115.00, USD plunged to a low of 114.36 earlier than settling on a tender be aware at 114.63 (-0.56%). The fast decline seems to be overdone however there is room for USD to check 114.30. The subsequent guide at 114.00 is now not predicted to come into the picture. On the upside, a breach of 115.10 (minor resistance is at 114.85) would point out that the modern weak spot has stabilized.”
Next 1-3 weeks: “Two days in the past (11 Jan, spot at 115.20), we held the view that the current USD electricity has come to an cease and we predicted USD to exchange between 114.55 and 115.90. Yesterday (12 Jan), USD dropped under 114.55 (low of 114.36). Downward momentum is starting to enhance however USD has to shut beneath 114.30 earlier than a sustained decline can be expected. The prospect for USD to shut beneath 114.30 would continue to be intact as lengthy as USD does no longer cross above 115.35 (‘strong resistance’ level) inside these couple of days. Looking ahead, the subsequent aid under 114.30 is at 114.00.”
