Door remains open for additional USD/JPY gains in the coming weeksAccording to Market Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.
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24 hour view: Our view that USD/JPY traded with a bearish bias yesterday was incorrect as it rallied as high as 146.39 before closing firm at 146.17 (+0.55%). Today, while there is room for USD/JPY to break above last week’s high near 146.55, it may not be able to hold above this level. The next resistance at 147.10 is unlikely to be threatened. To the downside, if USD/JPY breaks 145.40 (minor support is at 145.80), it would indicate that the current bullish pressure has faded.
Next 1-3 weeks: Yesterday we highlighted that “the chances of a further sustained advance in USD/JPY are not high”. However, we held the view that only a break of 144.00 would indicate that USD/JPY does not go higher. Subsequently, USD/JPY rebounded to close firm at 146.17 (+0.55%). Bullish momentum has increased, if only a little. From here, USD/JPY could break above last week’s high near 146.55. However, it remains to be seen if there is enough momentum to send USD/JPY to the next major resistance at 147.50. In general, only a break of 144.50 (the “strong support” level was at 144.00 yesterday) would indicate that USD/JPY does not advance further.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
