VOT Research Desk
USD/JPY remains under pressure for the time being, with a deeper drop to the 137.00 zone seeming unfavorable in the immediate term, according to UOB Group Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Yesterday, the USD fell quickly but only momentarily to 137.48 before rapidly rebounding. With the bounce, downward pressure has subsided, and the USD appears to have entered a consolidation period. In other words, the USD is projected to move sideways today, with a range of 138.20/139.30.
Within the next 1-3 weeks: “In our most recent narrative, published last Thursday (24 November, spot at 139.20), we stated that the danger for USD has switched to the downside, reaching 137.70.” Yesterday (November 28), the USD fell to 137.48 before recovering.
Although more USD weakening is not ruled out, bearish momentum has lessened, and this, combined with oversold conditions, suggests the likelihood of USD falling to the next support around 137.00 is low.
Overall, only a breach of 139.60 (the ‘strong resistance’ level) would suggest that the USD is not dropping further.
