USD/JPY: Expected to edge higher – UOB Group
|The US Dollar (USD) is expected to edge higher; due to the mild momentum, any advance is likely limited to a test of 149.70. In the longer run, although momentum has not increased much; further USD strength seems likely. Levels to watch are 150.05 and 151.00, UOB Group’s FC analysts Quek Ser Leang and Lee Sue Ann note.
Levels to watch are 150.05 and 151.00
24-HOUR VIEW: “We indicated last Friday that USD ‘appears to have moved into a consolidation,’ and we expected it to trade in a 148.10//149.40 range. USD subsequently traded between 148.39 and 149.28, closing at 149.13 (+0.38%). There has been a slight increase upward momentum, and today, we expect USD to edge higher. Due to the mild momentum, any advance is likely limited to a test of 149.70. The major resistance at 150.05 is unlikely to come into view. Support is at 148.95; a breach of 148.60 would indicate that the current mild upward pressure has faded.”
1-3 WEEKS VIEW: “We have been expecting a higher USD since early this month (as annotated in the chart below). In our most recent narrative from last Thursday (10 Oct, spot at 149.20), we highlighted that ‘although upward momentum has not increased much, further USD strength seems likely, and the levels to watch are at 150.05 and 151.00.’ We continue to hold the same view provided that 148.00 (‘strong support’ level previously at 147.50) is not breached.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.