FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang said USD/JPY needs to break above 145.00 to allow for a sustained advance in the next weeks.
Key Quotes
24-hour view: “Yesterday, we held the view that ‘there is room for USD to rise to 145.00 first before a more sustained pullback is likely’. Our expectations did not materialize as USD rose to 144.90 before closing little changed at 144.76 (+0.01%). The underlying tone is still positive and we see room for USD to rise above 145.00. However, USD might not be able to maintain a foothold above this level. The next resistance at 145.50 is unlikely to come under threat. Support wise, a breach of 144.20 (minor support is at 144.50) would indicate the current upward pressure has eased.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (27 Sep, spot at 144.30). As highlighted, upward momentum is beginning to build but USD has to close above 145.00 before a sustained advance is likely. The odds for USD to close above 145.00 are not high but they would remain intact as long as 143.40 (‘strong support’ level was at 142.80) is not breached.”
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