Economist Lee Sue Ann and Markets Strategist Quek Ser Leang from UOB Group expect the USD/JPY pair to find initial and firm support at 130.15, ahead of 129.80.
The USD/JPY currency pair has been on a downward trend in recent months, with analysts predicting further declines in the coming weeks. Economist Lee Sue Ann and Markets Strategist Quek Ser Leang from UOB Group have shared their insights on the matter, forecasting that the USD/JPY pair will find support at 130.15, with a potential further drop to 129.80.
What is USD/JPY?
USD/JPY is a currency pair that represents the value of the US dollar against the Japanese yen. It is one of the most commonly traded pairs in the forex market and is heavily influenced by economic and political developments in both countries.
USD/JPY Expected to Find Initial Support at 130.15
According to UOB Group’s economists, the USD/JPY pair is expected to find initial and firm support at 130.15. This support level is a crucial point for traders and investors, as it represents a potential turning point for the currency pair. If the pair does find support at this level, it could indicate a bullish trend reversal and a potential price increase.
However, if the pair fails to find support at 130.15, it could continue to decline, potentially dropping to 129.80. This level of support is also significant and could provide an opportunity for traders to buy the pair at a lower price.
Factors Affecting USD/JPY
Several factors are currently affecting the USD/JPY currency pair. The US Federal Reserve’s decision to maintain its low interest rate policy and continue its quantitative easing program has put pressure on the US dollar. Meanwhile, the Bank of Japan has kept its interest rates at a record low of -0.1%, which has weakened the yen.
Furthermore, the ongoing Covid-19 pandemic and its impact on the global economy have also played a role in the pair’s recent decline. The uncertainty surrounding the pandemic has led to market volatility and increased demand for safe-haven currencies, such as the Japanese yen.
In conclusion, the USD/JPY currency pair is expected to find initial support at 130.15, according to UOB Group’s economists. This support level could potentially lead to a bullish trend reversal and a price increase. However, if the pair fails to find support at this level, it could continue to decline, potentially dropping to 129.80. Traders and investors should pay close attention to economic and political developments in both the US and Japan, as these factors could have a significant impact on the currency pair’s performance.