Japanese Yen: Further gains likely against US Dollar - UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that USD/JPY’s sharp fall has generated strong downside momentum.
UOB analysts Quek Ser Leang and Lee Sue Ann foretell that the Japanese Yen (JPY) against the US Dollar (USD) is likely to continue its upward trajectory. After a sharp decline earlier, the USD has stabilized and is expected to hover between 156.50 and 157.50 over the next 24 hours. Over the subsequent weeks, the analysts still anticipate further declines for USD, targeting support levels at 156.00 and 155.50, with longer-term risks pointing to an additional low around January's 152.08.
Traders are closely monitoring the Federal Reserve and Bank of Japan policy meetings later in the week, hoping for key insights. Gold's (XAU/USD) gains are tempered by a pullback in oil prices, providing a buffer as geopolitical tensions ease in the Middle East. Cardano (ADA/USD) remains in a downtrend, with selling pressure mounting due to negative sentiment from derivatives metrics, on-chain analytics, and a deteriorating technical outlook.
The USD faces a critical juncture ahead of the November 3 midterm elections, as the potential shift in political control could influence fiscal policies and indirectly shape US monetary policy.
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