VOT Research Desk
For the time being, additional USDJPY declines cannot be ruled out, according to UOB Group economists Lee Sue Ann and Quek Ser Leang.
Daily perspective The US dollar fluctuated significantly during the trading session, swinging between 137.37 and 140.62 before finishing at 139.29 (-0.42%).
A mixed perspective has been produced by the choppy price movements, and the USD may trade in a volatile way going forward, with a predicted range of 138.35 to 140.35. 1-3 weeks from now:
Our most recent analysis was published on Monday (14 November, spot at 139.05), and it predicted more USD decline albeit at a slower rate. We stated that strong support is anticipated near the 138.00 level.
But yesterday, the USD momentarily fell below 138.00 (low of 137.67), before making a solid comeback. Although further weakness is possible, the strong support at 137.60 might not be in sight for some time, if ever.
On the plus side, a break of 140.80 (the “strong resistance” level yesterday was at 141.00) would suggest that the USD is unlikely to weaken any further.
