USD/JPY: Any further decline is unlikely to reach 142.70 – UOB Group
|Increase in momentum may lead to US Dollar (USD) breaking below 143.50 against Japanese Yen (JPY); any further decline is unlikely to reach 142.70. In the longer run, buildup in momentum could trigger further USD declines toward 142.70, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD must hold below 144.85 to sustain the momentum buildup
24-HOUR VIEW: "Yesterday, when USD was at 144.45, we stated that 'the current price movements appear to be part of a range trading phase, most likely between 144.05 and 145.00.' However, USD traded in a range of 143.76/144.76 before closing at 144.01, down by 0.44%. The price action has resulted in an increase in downward momentum. Today, USD may break below the 143.50 support level, but based on the current momentum, any further decline is unlikely to reach 142.70. To keep the momentum going, USD must not break above 144.45 (minor resistance is at 144.20)."
1-3 WEEKS VIEW: "Our most recent narrative was from last Wednesday (25 Jun, spot at 144.85), in which we indicated that USD 'appears to have moved into a range trading phase, and is likely to trade between 143.50 and 146.50 for the time being.' Yesterday, USD dropped to a low of 143.76. Downward momentum is beginning to build, and a break of 143.50 could trigger further declines toward 142.70. To sustain the momentum buildup, USD must hold below 144.85."
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