USD/JPY: USD has scope to extend above 145.00 – UOB Group

Advance in US Dollar (USD) has scope to extend above 145.00; the major resistance at 145.50 is likely out of reach for now. In the longer run, sharp advance reinforces view that USD could recover further to 145.50, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

USD can recover further to 145.50

24-HOUR VIEW: “We indicated yesterday that ‘the price action still seems to be part of a range trading phase, even though it is likely to trade in a lower range of 142.30/144.10 today.’ However, after dipping to 142.89, USD soared, reaching a 3-week high of 144.84. The advance has scope to extend above 145.00 today. The major resistance at 145.50 is likely out of reach for now. To maintain the buildup in momentum, USD must remain above 144.00 with minor support at 144.35.”

1-3 WEEKS VIEW: “In our most recent narrative from three days ago (23 Sep, spot at 144.20), we highlighted that ‘the strong advance in USD last week reinforces our view that USD could recover further to 145.50.’ We will continue to hold the same view provided that 142.30 (‘strong support’ level previously at 141.90) is not breached. Looking ahead, the next level to monitor above 145.50 is 147.00.”