Usdjpy On Its Way Down Uob

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Usdjpy On Its Way Down Uob

Usd/Jpy On Its Way Towards 140.80, According To Uob Group

FX analysts from UOB Group have issued a new forecast for the USD/JPY. According to them, the weakness in the US Dollar will continue for now.

This means the next important support for the USD/JPY pair is now 140.80, which is where it is headed. If the recent pace of USD selling continues, the level of 140.80 will also come into view.

Us Dollar Down By 1.89%

The recent sell-off in the US Dollar was a surprise for everyone as it lost 1.89%. Also, the drop in the US Dollar is still far from over as there's a lot more room. On the way down, the nearest support is at 144.00 and then 143.00. Once these two levels are lost, the next target to watch will be 140.80.

On the way up, the USD/JPY traders need to watch out for 146.50 and then 147.50 as these two levels can put a cap on the Dollar advance.

In the next 1 to 3 weeks, the weakness in the US Dollar is expected to continue. However, there's a lot of distance between the recent price and the 140.80, so the chances of hitting the support are not entirely zero.

UOB Group also added that a successful break of the 148.60 is required to signal a trend change. However, that might not happen anytime soon as the BoJ is on a rate hike path while the Fed is expected to deliver an emergency rate cut.

Although the rate difference between the two currencies still favors the US Dollar, investors are now more interested in the bigger picture. And the bigger picture is that the USA will slowly lower its policy rate while Japan will do the exact opposite.

Against this backdrop, it makes sense to think that the path of least resistance for the USD/JPY is towards the downside rather than the upside. In fact, a chance of resisting the 140.80 doesn't seem that far-fetched after all, given the recent price action and the fundamental backdrop.

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