USD/JPY: Shrinking odds for a drop to 143.00 – UOB

In the opinion of Economist Lee Sue Ann and Markets Strategist Quk Ser Leang at UOB Group’s Global Economics & Markets Research, a drop in USD/JPY to the 143.00 region seems to have lost momentum as of late.

Key Quotes

24-hour view: “Yesterday, we were of the view that USD ‘is likely to break 143.50 but is unlikely to challenge the next major support at 143.00’. However, USD did not break through 143.50 as it rebounded strongly from the support level (low has been 143.50). The volatile price actions have resulted in a mixed outlook. USD could continue to trade in a choppy manner, likely between 143.80 and 144.90.”

Next 1-3 weeks: “We noted yesterday (05 Oct, spot at 143.90), short-term downward momentum is building and we expected USD to trade with a downward bias towards 143.00. USD subsequently dropped to 143.50 before rebounding strongly to a high of 144.84. While our ‘strong resistance’ level at 144.90 is not breached, the odds of USD heading lower to 143.00 have diminished.”