The continuation of the uptrend in USD/JPY appears likely with the next hurdle of relevance now emerging at 146.00, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
24-hour view: “Yesterday, we indicated that USD ‘could rise above 144.00 but is unlikely able to maintain a foothold above this level’. USD subsequently popped to a high of 144.70, dropped to 143.39 before snapping back up to close at 144.04 (+0.22%). Despite the choppy price actions, the overall outlook points to a higher USD today. That said, the major resistance at 145.00 is unlikely to come under threat (144.70 is still quite a strong resistance level). Support is at 144.00 followed by 143.65.”
Next 1-3 weeks: “We have expected USD to trade sideways since late last week. Yesterday, USD soared and tested the top of our expected range of 141.40/144.70 (high of 144.70 during NY hours). While it is premature to expect a break of 145.00, the odds of USD rising above this level have increased. Looking ahead, the next resistance level of note is at 146.00. Support wise, a breach of 143.30 (‘strong support’ level) would indicate that the chance of USD breaking 145.00 has passed.”
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