USD/JPY: Likely to trade in a 148.55/149.60 range – UOB Group
|The US Dollar (USD) is likely to trade in a 148.55/149.60 range. In the longer run, there has been no further increase in momentum; a breach of 148.40 would indicate that USD is not rising further, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD has a chance to break below 148.40
24-HOUR VIEW: “Two days ago, USD rose to 149.98. Yesterday, we indicated that ‘despite the advance, there has been no significant increase in momentum.’ We also indicated that ‘instead of continuing to advance, USD is more likely to trade in a range, probably between 149.00 and 149.95.’ USD then traded in a range of 148.84/149.83, closing at 149.19 (-0.37%). While further range trading appears likely today, the slightly softened underlying tone suggests a lower range of 148.55/149.60.”
1-3 WEEKS VIEW: “We have been expecting a higher USD since early this month. 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.” USD rose to 149.98 two days ago before easing off. There has been no further increase in momentum, and a breach of 148.40 (no change in ‘strong support’ level) would indicate that USD is not rising further.”
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