USD/JPY: Next level to watch is 158.00 – UOB Group

US Dollar (USD) is expected to continue moving higher; the next level to watch is 158.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/JPY is expected to continue moving higher

24-HOUR VIEW: "After USD rallied sharply to a high of 157.18 two days ago, we highlighted yesterday that 'the sharp rise appears excessive, but there is scope for the rally in USD to test 157.55'. We added, 'the next resistance at 158.00 is likely out of reach for now'. We were not wrong, as USD rose to a high of 157.89. USD retreated from the high to close at 157.46 (+0.20%). Although upward momentum is easing, it is too early to expect a sustained pullback. Today, USD is likely to trade at these higher levels, probably between 157.00 and 158.00. To put it another way, USD is unlikely to break clearly above 158.00."

1-3 WEEKS VIEW: "We turned positive on USD early this week. Yesterday (20 Nov, spot at 157.10), we highlighted that 'we continue to expect a higher USD, and the level to watch is 158.00'. There is no change in our view. Looking ahead, if USD breaks clearly above 158.00, the focus will shift to 158.45. We will maintain our positive view as long as USD holds above the ‘strong support’ at 156.20 (level was at 155.60 yesterday)."