USD/JPY: 149.40 is likely out of reach today – UOB Group
|Impulsive momentum indicates further US Dollar (USD) strength; overbought conditions suggest 149.40 is likely out of reach today. In the longer run, USD is expected to continue to rise, potentially breaking above 149.40, UOB Group FX analysts Quek Ser Leang and Peter Chia note.
USD is expected to continue to rise
24-HOUR VIEW: “Our view for USD to trade in a range last Friday was incorrect. In NY trade, USD took off and surged to 149.00, closing on a strong note at 148.71 (+1.22%). The impulsive momentum indicates further USD strength, but severely overbought conditions suggest 149.40 is likely out of reach today. There is another resistance level at 149.00. To keep the momentum going, USD must not break below 147.50 with minor support at 148.10.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (03 Oct, spot at 146.55), wherein ‘the recent strong advance in USD has resulted in a boost in upward momentum’ and ‘this could lead to USD rising to 148.00.’ Last Friday, USD surged and reached 149.00. We continue to expect USD to rise, potentially breaking above 149.40. Looking ahead, the next resistance level of note above 149.40 is at 150.00. To maintain the momentum, USD must remain above 146.40 (‘strong support’ level previously at 144.80).”
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