USD/JPY: Moving towards 154.50 – UOB Group
|Room for the US Dollar (USD) to decline further. The next level to watch is 154.50, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
USD is set to reach 154.50
24-HOUR VIEW: “We indicated yesterday that USD ‘could retest the 156.25 level before a more sustained recovery is likely.’ However, USD broke below 156.25, reaching a low of 155.55. While the sharp drop is oversold, there is room for USD to decline further, even though it remains to be seen if it can maintain a foothold below 155.35. The next major support at 154.50 is unlikely to come under threat. Resistance level is at 156.15, followed by 156.40.”
1-3 WEEKS VIEW: “Downward momentum is picking up again; if USD breaks and stays below 155.35, the next level to watch is 154.50. Our most recent narrative was from last Friday (19 Jul, spot at 157.35), wherein ‘a breach of 158.50 would suggest that the weakness in USD that started more than a week ago (as annotated in the chart below) has stabilised.’ Yesterday, USD dropped sharply to a low of 155.55. Downward momentum is picking up again, and if USD breaks and stays below 155.35, the next level to watch is 154.50. On the upside, the ‘strong resistance’ level has moved lower to 157.15 from 158.50.”
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