USD/JPY risks further losses below 114.75 – UOB

FX Strategists at UOB Group noted the downside momentum in USD/JPY could accelerate in case of a breach of 114.75.

Key Quotes

24-hour view: “Last Friday, we expected USD to ‘trade between 114.75 and 115.25’. USD subsequently traded within a range of 114.78/115.29 before closing little changed at 115.00 (+0.06%). The price actions still appear to be part of a consolidation and we continue to expect USD to trade sideways, expected to be between 114.75 and 115.25.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (18 Feb, spot at 115.40). As highlighted, downward momentum has improved but USD has to close below 114.75 before a sustained decline is likely. The chance for USD to close below 114.75 would remain intact as long as it does not move above 115.55 within these couple of days. Looking ahead, the next support below 114.75 is at 114.40.”