USD/JPY now looks to a test of 145.00 – UOB
|The strong upside momentum could now motivate USD/JPY to retest the 145.00 region in the next weeks, according to UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.
Key Quotes
24-hour view: We highlighted yesterday that “Conditions remain severely overbought, and USD is unlikely to rise much further.” We expected USD to trade in a range of 142.40/143.65. In London trade, USD dropped to 142.22 and then rebounded to 143.47 before closing unchanged at 143.32 in NY. Overbought conditions have unwounded somewhat, and today there is room for USD to edge higher. However, any advance is expected to face solid resistance at 144.00. Support is at 142.80, followed by 142.40.
Next 1-3 weeks: Our update from yesterday (02 Aug, spot at 143.10) still stands. As highlighted, while USD could continue to rise, it remains to be seen if there is enough momentum to carry it to June’s high near 145.00The upside risk is intact as long as USD stays above 142.00 (‘strong support’ level was at 141.50 yesterday).
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