USD/JPY: Likely to consolidate between 149.40 and 150.50 – UOB Group
|US Dollar (USD) is expected to consolidate vs Japanese Yen (JPY) between 149.40 and 150.50. In the longer run, scope for USD to rise further, but it may find the 151.00/151.30 resistance zone difficult to break, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Scope for USD to rise further
24-HOUR VIEW: "USD soared to 150.94 yesterday, pulling back sharply to close lower by 0.52% at 149.90. The pullback in overbought conditions and slowing momentum suggests USD has likely moved into a consolidation phase. Today, we expect USD to trade between 149.40 and 150.50."
1-3 WEEKS VIEW: "After rising sharply for three straight days, USD pulled back yesterday and closed lower by 0.52% at 149.90. Despite the pullback, there is scope for USD to rise further. However, USD may find the 151.00/151.30 resistance zone difficult to break. The probability of USD rising further will remain intact as long as 149.00 (‘strong support’ level) is not breached. Meanwhile, overbought short-term conditions could lead to a couple of days of consolidation."
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