USD/JPY: Decline is unlikely to threaten the major support at 153.30 – UOB Group

Bias for the US Dollar (USD) is tilted to the downside; any decline is unlikely to threaten the major support at 153.30. In the longer run, USD is expected to trade in a range, likely between 153.30 and 156.50, UOB Group’s FX strategists Quek Ser Leang and Lee Sue Ann note.

USD is expected to trade in a range

24-HOUR VIEW: “After USD rose to 155.88 on Wednesday and then pulled back, we indicated yesterday (Tuesday), when it was at 155.25, that it ‘could pull back further, but any decline is likely limited to a test of 154.35.’ Our view of a pullback was not wrong, even though USD declined more than expected to 153.90. Although downward momentum has not increased much, the bias for USD is still tilted to the downside. However, the major support at 153.30 is unlikely to come under threat (there is another support at 153.70). Resistance is at 154.70, followed by 155.00.”

1-3 WEEKS VIEW: “Yesterday (21 Nov, spot at 155.25), we indicated that USD ‘is expected to trade in a range, likely between 153.30 and 156.50.’ We continue to hold the same view. That said, downward momentum has increased somewhat, and the near-term bias is for USD to test the 153.30 support level.”