USD/JPY: volatile but downside not convincing – UOB

FXStreet (Guatemala) – Analysts at UOB noted that USD/JPY plunged below the key 116.45 support yesterday to touch a low of 115.97 but are not convinced on the downside case within all this volatility, and spot today is through the 200 sma on the hourly now.

Key Quotes:

“Despite the spectacular drop and the prevalent bullish JPY sentiment, we are not convinced that the current movement is the start of a sustained down-move in USD.

We prefer to hold a neutral view for now and expect this pair to trade within a broad 115.95/118.40 range for the next 1 to 2 weeks. That said, any unexpected daily closing below 115.95/00 would strongly indicate that a move towards 115 has started.”

Analysts at UOB noted that USD/JPY plunged below the key 116.45 support yesterday to touch a low of 115.97 but are not convinced on the downside case within all this volatility, and spot today is through the 200 sma on the hourly now.

(Market News Provided by FXstreet)