USD/JPY: Further advance is not expected to reach the major resistance at 155.00 – UOB Group
US Dollar (USD) could test 154.45 against Japanese Yen (JPY); any further advance is not expected to reach the major resistance at 155.00. In the longer run, USD is likely to trade in a range for now, likely between 153.10 and 155.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD is likely to trade in a range for now
24-HOUR VIEW: "We noted in the early Asian trade yesterday, when USD was at 153.70, that 'there has been a tentative buildup in upward momentum'. While we indicated that USD 'could test 154.10', we pointed out that 'based on the current momentum, it is unlikely to break clearly above this level'. We were right on the first count but not the second, as USD rose to a high of 154.25. Upward momentum has increased, but not significantly. Today, USD could test 154.45. Any further advance above this level is not expected to reach the major resistance at 155.00. Support is at 153.90, followed by 153.60."
1-3 WEEKS VIEW: "Last Friday (07 Nov, spot at 153.00), we indicated that USD 'is likely to trade with a downward bias'. After USD rebounded, we highlighted yesterday (10 Nov, spot at 153.70) that 'if USD breaks above 154.10 (‘strong resistance’ level), it would indicate that USD is likely to range trade rather than with a downward bias'. USD subsequently rose to a high of 154.25. As indicated, USD is likely to trade in a range for now, likely between 153.10 and 155.00."
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