US Dollar (USD) could advance further against Japanese Yen (JPY); the major resistance at 149.20 is unlikely to come under threat. 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.
USD can eye a move toward 149.20
24-HOUR VIEW: “USD rose to a high of 147.94 last Friday. Yesterday (Monday), when it was at 147.75, we indicated that ‘there is room for USD to rise further, but any advance is likely part of a 147.25/148.25 range.’ However, USD soared to a high of 148.57 before closing higher for the third straight day (148.53, +0.59%). While the sharp rise over the past few days appears overstretched, USD could advance further today. That said, the major resistance at 149.20 is unlikely to come under threat. Note that there is another resistance level at 148.90. On the downside, support levels are at 148.25 and 147.95.”
1-3 WEEKS VIEW: “Following last Friday’s price action, we indicated the following yesterday (28 Jul, spot at 147.75): ‘Upward momentum is starting to build, but it is not strong enough to indicate a sustained rise just yet. For a continued advance, USD must first close above 148.25. The likelihood of USD closing above 148.25 will remain intact as long as 146.65 (‘strong support’ level) is not breached. Looking ahead, if USD were to break clearly above 148.25, it could potentially lead to a move toward 149.20.’ USD then soared and closed at 148.53. The price action indicates that USD could rise toward 149.20. The ‘strong support’ level is now at 147.40 instead of 146.65.”
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