USD/JPY Underpinned by 108.50 – UOB
The research team at UOB Group sees USD/JPY edging higher while supported by the 108.50 level.
“The sharp and rapid drop in USD that started from 113.80 (29 March) is showing signs of slowing down”.
“Attempts to move below 108.00 were thwarted by the strong 107.60/65 support and the downward pressure has eased with the recovery from the low”.
“Daily MACD is showing bullish divergence and has crossed into positive territory as of yesterday. All these point to USD is trying to form a base for a move higher”.
“However, USD has to break above the major and key 110.65 resistance (low in mid March & falling trend-line) to indicate that a short-term low is in place (110.00 is already a strong resistance)”.
“Overall, this pair is expected to remain underpinned unless there is a move back below 108.50 within the next several days”.