(VIANEWS) – FX Strategists from UOB Group suggested that a drop to the USD/JPY level of 108.75 and even 108.50 is possible if USD/JPY closes lower than 109.05 over the coming weeks.
FXStreet confirmed USD’s weakness but USD might not be able maintain support below the key support of 109.05. It is unlikely that the next support level at 108.75 will be reached.
Yesterday, 02 Aug. we noted that the’shorter term downward momentum had improved slightly but USD must close below 109.05 to prevent a sustained fall can be expected. The USD dropped further to 109.17, before ending on a soft note of 109.28 (+0.38%). The downward momentum is improving further. A daily close below 109.05 could indicate that USD may fall to 108.75 or even 108.50.
USD/JPY (USDJPY) is currently on bearish momentum. At 11:06 EST on Tuesday, 3 August, USD/JPY (USDJPY) is at 108.9730, 2.13% down since the last session’s close.
USD/JPY (USDJPY) Range
About USD/JPY’s daily highs and lows, it’s 0.104% down from its trailing 30 days low of $109.09 and 1.748% down from its trailing 30 days high of $110.91.
USD/JPY’s yearly highs and lows, it’s 6.222% up from its 52-week low and 2.403% down from its 52-week high.
USD/JPY’s last week, last month’s, and last quarter’s current volatility was a negative 0.15%, a negative 0.05%, and a positive 0.36%, respectively.
USD/JPY’s current volatility rank, which measures how volatile a financial asset is (variation between the lowest and highest value in a period), was 0.29% (last week), 0.28% (last month), and 0.36% (last quarter), respectively.
Forex Price Classification
According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, USD/JPY’s Forex is considered to be overbought (>=80).
Last news about USD/JPY (USDJPY)
Usd/jpy retreats to 109.50 area as US t-bond yields turn south. According to FXStreet on Monday, 2 August, "In case risk flows remain in control of financial markets, USD/JPY could find it difficult to make a decisive move in either direction in the second half of the day.", "Falling US Treasury bond yields seem to be causing USD/JPY to edge lower ahead of high-tier macroeconomic data releases from the US. "
Usd/jpy price analysis: testing critical daily support line at 109.25. According to FXStreet on Tuesday, 3 August, "The near-term technical outlook for USD/JPY appears bearish, as the spot awaits a daily closing below the two-month-old ascending trendline support at 109.25 to unleash additional downside."
Usd/jpy eyes 110.00 as USD rebounds ahead of US PMI data. According to FXStreet on Sunday, 1 August, "The buying interest in the US dollar keeps USD/JPY higher on Monday in the Asian session. "
Usd/jpy risks a probable test of 108.75 – UOB. According to FXStreet on Tuesday, 3 August, "A drop to the 108.75 level and even 108.50 looks likely if USD/JPY closes below 109.05 in the next weeks, suggested FX Strategists at UOB Group."
Usd/jpy consolidates in a range above mid-109.00s. According to FXStreet on Monday, 2 August, "Expectations that the Fed will retain its ultra-lose monetary policy stance for a longer period continued acting as a headwind for the USD and kept a lid on any meaningful gains for the USD/JPY pair, at least for now.", "This, along with the broader market risk sentiment will influence the USD/JPY pair and allow traders to grab short-term opportunities."
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