USD/JPY: More likely to trade in a 153.00/154.10 range – UOB Group

Instead of continuing to advance, USD is more likely to trade in a 153.00/154.10 range. In the longer run, upward momentum has eased; USD is expected to trade in a 151.30/154.70 range, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Upward momentum has eased

24-HOUR VIEW: “When USD was trading at 152.80 yesterday, we noted that ‘provided that USD remains above 152.25 (minor support is at 152.50), it could edge higher to 153.25, potentially reaching 153.55.’ Our view was of a higher USD was not wrong, even though the anticipated advance exceeded our expectation as USD rose to a high of 153.95. USD then pulled back from the high to close at 153.71. The pullback in overbought conditions and slowing momentum suggests instead of continuing to advance, USD is more likely to trade in a 153.00/154.10 range.”

1-3 WEEKS VIEW: “We shifted from a positive to neutral USD stance yesterday (11 Nov, spot at 152.80), indicating that ‘upward momentum has eased.’ We expected USD to trade in a 151.30/154.70 range. We continue to hold the same view.”