USD/JPY Forecast: Potential for USD to Reach 142.80 Before Stabilizing
Overview
According to UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann, the US Dollar (USD) is showing signs of potential strength as it hovers above 140.90. There is a possibility for the USD to test 142.80 before stabilizing in the short term. In the longer run, the USD weakness seems to have stabilized, with an expected trading range between 140.00 and 144.00.
24-Hour View
- On Monday, the USD experienced a sharp decline to 139.56 before rebounding.
- Despite oversold conditions, the USD is more likely to trade in a sideways range of 140.10/141.40.
- If USD remains above 140.90, there is a potential for it to test 142.80 before leveling off.
- Immediate support is at 141.40, with the next resistance at 144.00.
1-3 Weeks View
- USD broke below the round-number support of 140.00 but showed limited downward momentum.
- The recent weakness in the USD appears to have stabilized with a potential trading range between 140.00 and 144.00.
- A breach of 142.20 would indicate a more significant shift in USD strength.
Analysis and Implications
As the USD/JPY pair fluctuates within the forecasted range, it is essential for investors and traders to monitor the key levels mentioned by the UOB Group analysts. Understanding the potential for the USD to reach 142.80 before stabilizing can help in making informed decisions regarding currency trades and investments.
For individuals looking to exchange currencies or engage in forex trading, keeping an eye on the USD’s movements against the Japanese Yen (JPY) can provide valuable insights into market trends and potential opportunities for profit.
Overall, the analysis suggests that the USD is currently in a phase of consolidation, with a likely trading range between 140.00 and 144.00. This information can be used by investors to adjust their strategies and positions accordingly, taking advantage of potential price movements within this range.