USD/JPY: Bias for USD is on the downside – UOB Group

There is scope for US Dollar (USD) to edge lower to 143.80 vs Japanese Yen (JPY); a sustained break below this level seems unlikely. In the longer run, the bias for USD is on the downside toward 143.80, potentially to 143.30, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD/JPY can potentially fall to 143.30

24-HOUR VIEW: "Subsequent to USD price action on Monday, we highlighted yesterday, Tuesday that 'There has been no further increase in downward momentum, and instead of weakening today, USD is more likely to trade between 144.60 and 145.70.' Our assessment was incorrect. USD rose to 145.51, dropped to 144.07 and then rebounded to close at 144.50, lower by 0.24%. We still do not detect a significant increase in downward momentum. However, there is scope for USD to edge lower to 143.80. A sustained break below this level seems unlikely. The next support at 143.30 is also unlikely to come into view. Resistance is at 144.75, followed by 145.10."

1-3 WEEKS VIEW: "We have expected USD to consolidate since last week. In our latest narrative from two days ago (19 Mays, spot at 145.30), we indicated that USD 'remains in a consolidation, but we now tighten the range to 144.50/147.30.' Yesterday, USD dropped below 144.50, reaching a low of 144.07. Despite the decline, there has been no significant increase in downward momentum. That said, the bias for USD is on the downside toward 143.80, potentially reaching 143.30. To maintain the momentum, USD must remain below 145.80."