August 5, 2020 USD / JPY Analysis

August 5, 2020 USD / JPY Analysis

UOB FX Strategists said that they expect the USD / JPY parity to remain uncertain so far and will continue to trade in the coming weeks between 105.00-107.00. 24-hour outlook: “The USD is trading in between 105.62 and 106.19, in a much narrower band than the expected side transaction at 105.50 / 106.50. The USD is expected to drop to 105.35 from here. It is unlikely that the next support at 105.00 will enter the picture. On the upside, only a move above 106.15 will show that the current downward trend is attenuating (small resistance at 105.95). " The next 1-3 weeks: “We've expected the USD to weaken since July 22 since our last update, but a break in '105.00 won't be surprising. It is unlikely that 104.40 will enter the picture soon '. However, the USD broke the 104.40 level on Friday and dropped to 104.17 before removing it, easily exceeding various resistance levels (106.05 high). Such a price action is the largest one-day interval since the "turmoil" in March, as can be seen in the wide daily range of 188 pips. In general, the USD outlook seems to be uncertain. From here on, USD can trade fluctuatingly and in a wide range in the 105.00 / 107.00 band. ”-UOB