US Dollar (USD) could potentially test 145.00 against Japanese Yen (JPY); the major resistance at 145.50 is unlikely to come under threat. In the longer run, USD is likely to trade in a range between 143.00 and 145.50, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD is likely to trade in a range
24-HOUR VIEW: “Our view for ‘further decline in USD’ last Friday was incorrect. Instead of declining further, USD rebounded strongly to 144.48. The strong rebound has gathered momentum, and USD could potentially test 145.00 today. A rise above this level is not ruled out, but the major resistance at 145.50 is unlikely to come under threat. On the downside, support levels are at 144.00 and 143.50.”
1-3 WEEKS VIEW: “Following the sharp drop in USD last Thursday, we indicated on Friday (13 Jun, spot at 143.00) that ‘not only has the likelihood of a recovery dissipated, but the chance of USD declining to 142.20 has also increased.’ However, we pointed out, ‘should USD break above 144.40, it would suggest that it could trade in a broad range for a period of time.’ Our view was invalidated quickly, as USD rose to a high of 144.48. As indicated, the breach of 144.40 suggests USD is likely to trade in a range, probably between 143.00 and 145.50.”
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