USD Slows Down in Descent Against JPY

UOB strategist Quek Ser Leang is keeping his negative stance on the US Dollar (USD) against the Japanese Yen (JPY), but notes that downward momentum is slowing down. In a recent report, Quek said that USD/JPY dropped to 153.23 and closed at 153.54, with an intraday bias tilted lower.

On a 1-3 week horizon, Quek has been holding a negative Dollar stance since early this month. Last Tuesday (08 Sep), he indicated that the price action suggests USD is likely to continue to weaken, and the next support level to watch is the year-to-date low of 152.08.

However, after USD rebounded, Quek indicated on Friday (11 Sep) that downward momentum is slowing, and the odds of revisiting the 152.08 low are diminishing. He noted that a break above 154.90 would signal stabilisation in the weakness of USD.