USD/JPY: Sustained gains seen above 145.00 – UOB

Sustained advance in USD/JPY looks likely above the 145.00 region, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the bias for USD is on the upside’. We added, ‘A sustained rise above 144.50 is unlikely’. USD subsequently rose to 144.78 before closing at 144.75. USD pulled back from the high in early Asia trade and upward pressure appears to have eased somewhat. That said, there is room for USD to rise to 145.00 first before a more sustained pullback is likely. For today, the next resistance at 145.50 is unlikely to come under challenge. On the downside, a breach of 143.80 (minor support is at 144.00) would indicate USD is unlikely to advance further.”

Next 1-3 weeks: “Our latest narrative was from last Friday (23 Sep, spot 142.20) where we held the view that USD could trade between 139.00 and 144.50.  Yesterday, USD rose to a high of 144.78. 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 142.80 (‘strong support’ level) is not breached.”