USD/JPY: To test the major resistance at 144.00 – UOB Group

FXStreet Insights Team FXStreet

The US Dollar (USD) has potential to test the major resistance at 144.00. In the longer run, upward momentum is building; if USD can break above 144.00, it could trigger a stronger recovery towards 145.50, UOB Group FX analysts Quek Ser Leang and Victor Yong note.

USD/JPY can test 144.00 near term

24-HOUR VIEW: “Yesterday, we held the view that ‘as long as USD remains above 140.90, it could test 142.80 before leveling off.’ The subsequent price action did not turn out as we expected, as USD plummeted briefly to 140.43 in NY trade and then surged to close largely unchanged at 142.27 (-0.09%). USD continues to advance in early Asian trade today and could potentially test the major resistance at 144.00. On the downside, support can be found at 141.70 (minor support is at 142.40).”

1-3 WEEKS VIEW: " We indicated yesterday (18 Sep, spot at 142.00) that the recent USD weakness has stabilised. We expected USD to trade in a range between 140.00 and 144.00. USD traded on a firm note in Asian trade today, and upward momentum is building. From here, if it can break clearly above 144.00, it could trigger a stronger recovery towards 145.50. The likelihood of USD breaking clearly above 144.00 will remain intact, provided that the ‘strong support’ level at 141.00 is not breached.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.