USD/JPY: Weakness has not stabilised – UOB Group

Price movements are likely part of a range trading phase, probably between 148.55 and 149.75. In the longer run, USD weakness has not stabilised vs Japanese Yen (JPY); pace of any further decline is likely slower. The next level to monitor is 147.70, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD weakness has not stabilised

24-HOUR VIEW: "After USD plummeted to 148.56 on Tuesday and then rebounded, we indicated yesterday (Wednesday) that 'despite the sharp drop from the high, there has been no significant increase in momentum.' However, we were of the view that 'there is a chance for USD to retest the 148.55 level.' USD subsequently briefly dipped to 148.61, rebounded to 149.88, and then pulled back to close largely unchanged at 149.08 (+0.04%). The price movements are likely part of a range trading phase, probably between 148.55 and 149.75."

1-3 WEEKS VIEW: "Our update from yesterday (26 Feb, spot at 149.15) is still valid. As highlighted, although the USD weakness from early last week has not stabilised, oversold conditions suggest the pace of any further decline is likely to be slower. Overall, only a breach of 150.20 (‘strong resistance’ level was at 150.55 yesterday) would indicate that the weakness has stabilised. Until then, there is a chance for USD to drop further, possibly to 147.70."