VOT Research Desk
According to UOB Group’s economist Lee Sue Ann and market strategist Quek Ser Leang, the continuation of the USDJPY’s downward trend should not be ruled out in the near future. 24-hour view:
We underlined yesterday that USD “may continue to trade in a volatile manner between 138.35 and 140.35.
Following that, USD traded inside a smaller range (138.72/140.29) than anticipated. We anticipate USD will trade in a range of 138.90/140.20 today because of the price actions, which are probably part of a consolidation.
Next 1-3 weeks: There is not much to add to our update from yesterday (16 Nov, spot at 139.35). Further USD decline is possible, as was mentioned, but it may take some time, if at all, to reach the strong support at 137.60.
In addition, the bright side, a break of 140.80 (a level that has been a “strong resistance level since yesterday) would suggest that the USD is unlikely to decline any further.
