USD/JPY has a chance to rise toward 149.20 – UOB Group

The current price movements are likely part of a 147.85/148.75 consolidation phase. In the longer run, price action indicates that USD could rise toward 149.20, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are likely part of a 147.85/148.75

24-HOUR VIEW: "We expected USD to 'advance further' yesterday, but we highlighted that 'the major resistance at 149.20 is unlikely to come under threat.' We also pointed out that 'there is another resistance level at 148.90.' Our view did not materialise as USD traded in a range of 148.13/148.80, closing largely unchanged at 148.44 (-0.06%). The price movements are likely part of a consolidation phase. Today, we expect USD to trade between 147.85 and 148.75."

1-3 WEEKS VIEW: "Yesterday (29 Jul, spot at 148.55), we highlighted that the recent price action 'indicates that USD could rise toward 149.20.' Although USD rose to a high of 148.80, it pulled back to close largely unchanged at 148.44 (-0.06%). Upward momentum is tentatively slowing, but as long as 147.40 (no change in ‘strong support’ level) holds, there is still a chance for USD to rise to 149.20."