USD/JPY: Increase in momentum is not sufficient to indicate a sustained advance – UOB Group
The current price movements are likely part of a range trading phase between 143.60 and 145.10. In the longer run, Increase in momentum is not sufficient to indicate a sustained advance just yet; US Dollar (USD) must first break and hold above 145.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Movements are part of a range trading phase between 143.60 and 145.10
24-HOUR VIEW: "We highlighted the following yesterday: 'The price movements have resulted in a slight increase in upward momentum, but this is likely to lead to a higher trading range of 144.50/145.50 instead of a sustained advance. In other words, USD is unlikely to break clearly above 145.50.' USD subsequently rose to 145.46 and then fell to a low of 144.31. The current price movements are likely part of a range trading phase, expected to be between 143.60 and 145.10."
1-3 WEEKS VIEW: "In our most recent narrative from Monday (09 Jun, spot at 144.70), we indicated that the increase in upward momentum is not sufficient to indicate a sustained advance just yet.' However, we pointed out that 'if USD were to break and hold above 145.50, it could potentially trigger a strong recovery.' Yesterday, USD rose to within a few pips of 145.50 (high of 145.46) before pulling back. While upward momentum is beginning to slow, there is still a chance for USD to break clearly above 145.50 as long as 143.60 (no change in ‘strong support’ level) is not breached."
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FXStreet Insights Team
FXStreet
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