USD/JPY: Rapid buildup in momentum suggests further USD declines – UOB Group
|Rapid buildup in momentum suggests further US Dollar (USD) declines that could potentially reach 144.25 against Japanese Yen (JPY). In the longer run, USD appears to have moved into a range trading phase between 143.50 and 146.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD moves into a range trading phase between 143.50 and 146.50
24-HOUR VIEW: "USD fell sharply to a low of 144.49 two days ago and then rebounded to close at 144.91. Yesterday, when USD was at 144.85, we held the view that 'there is a chance for USD to retest the 144.50 level before a more sustained recovery can be expected.' However, USD did not quite retest the 144.50 level, as it rebounded strongly from 144.58 to 145.95, before pulling back to close at 145.25 (+0.23%). USD dropped sharply on the open today, and the rapid buildup in momentum suggests further declines that could potentially reach 144.25. The major support at 143.50 is probably out of reach for now. Resistance levels are at 145.25 and 145.55."
1-3 WEEKS VIEW: "We revised our view to neutral yesterday (25 Jun, spot at 144.85), indicating that USD 'appears to have moved into a range trading phase.' We expected USD to 'trade between 143.50 and 146.50 for the time being.' We continue to hold the same view."
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