USD/JPY: Likely to trade between 144.80 and 145.80 – UOB Group
|US Dollar (USD) is expected to trade in a range, most likely between 144.80 and 145.80. In the longer run, there has been a tentative buildup in momentum; for a sustained advance, USD must first break and hold above 145.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Tentative buildup in momentum
24-HOUR VIEW: "We expected USD to 'trade in a range between 144.40 and 145.50' yesterday. Although USD rose above 145.50 and reached 145.76, it pulled back sharply from the high. The price movements did not lead to any increase in upward momentum, and today, we continue to expect USD to trade in a range, most likely between 144.80 and 145.80."
1-3 WEEKS VIEW: "Yesterday, 19 Jun (spot at 144.85), we stated that 'there has been a tentative buildup in momentum, but USD must first break and hold above 145.50 before a sustained advance can be expected.' We also indicated that 'the likelihood of USD breaking clearly above 145.50 will remain intact as long as the ‘strong support’ level, now at 143.85, holds.' USD subsequently rose to a high of 145.76 before closing at 145.45, and we continue to hold the same view for now."
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