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22 Apr 2015
USD/JPY downside potential whilst below 120.10 – UOB
FXStreet (Barcelona) - Analysts at UOB Group, believe USD/JPY risks a move lower towards 118.50/55 until 120.10 holds the upside for the pair.
Key Quotes
“The rebound from the strong 118.50/55 support is more resilient than expected and the stop-loss for our bearish USD view at 119.85 is barely intact (overnight high of 119.83).”
“While the up-move could break above 119.85, we view any such move as an extension in range and not the start of a sustained USD rally. As such, we are shifting the stop-loss level higher to 120.10. As long as this level is intact, we believe we should see at least a retest 118.50/55 if not the 118.30 target in the coming days.”
Key Quotes
“The rebound from the strong 118.50/55 support is more resilient than expected and the stop-loss for our bearish USD view at 119.85 is barely intact (overnight high of 119.83).”
“While the up-move could break above 119.85, we view any such move as an extension in range and not the start of a sustained USD rally. As such, we are shifting the stop-loss level higher to 120.10. As long as this level is intact, we believe we should see at least a retest 118.50/55 if not the 118.30 target in the coming days.”