USDJPY: Downside is expected to meet support at 137.60 – UOB

Extra decline in USDJPY cannot be ruled out for the time being, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “USD traded in a volatile manner as it swung wildly between 137.37 and 140.62 before settling at 139.29 (-0.42%). The choppy price actions have resulted in a mixed outlook and USD could continue to trade in a volatile manner, expected to be between 138.35 and 140.35.”

Next 1-3 weeks: “Our latest narrative was from Monday (14 Nov, spot at 139.05) where we expected further USD weakness albeit at a slower pace. We indicated that the 138.00 level is expected to offer solid support. However, USD dropped briefly below 138.00 yesterday (low of 137.67) before rebounding strongly. Further weakness is not ruled out, but the solid support at 137.60 may not come into view so soon, if at all. On the upside a break of 140.80 (‘strong resistance’ level was at 141.00 yesterday) would indicate that USD is unlikely to weaken further.”