USD/JPY: Expected to edge below 153.70 – UOB Group

The US Dollar (USD) is expected to edge below 153.70; the major support at 153.30 is unlikely come under threat. In the longer run, USD is expected to trade in a range, likely between 153.30 and 156.50, UOB Group’s FX analyst Quek Ser Leang and Lee Sue Ann notes.

USD is expected to trade in a range

24-HOUR VIEW: “Last Thursday, we expected USD to pullback. After USD pulled back, we indicated last Friday that ‘although downward momentum has not increased much, the bias for USD is still tilted to the downside.’ However, we stated that ‘the major support at 153.30 is unlikely to come under threat and that there is another support at 153.70.’ Our view did not turn out, as USD traded between 153.96 and 155.01, closing at 154.74 (+0.15%). Today, it opened and traded lower. We continue to detect a soft bias and expect USD to edge below 153.70. The major support at 153.30 is still unlikely to come under threat. Resistance levels are at 154.55 land 154.90.”

1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (21 Nov, spot at 155.25), wherein USD ‘is expected to trade in a range, likely between 153.30 and 156.50.’ There is no change in our view.”