USD/JPY: Pair is expected to trade with an upward bias – UOB Group
|Room for US Dollar (USD) to rise to 158.65 before a pullback can be expected; the major resistance at 159.00 is likely out of reach. In the longer run, USD is expected to trade with an upward bias; any advance is expected to face significant resistance at 159.00, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
USD/JPY is expected to face significant resistance at 159.00
24-HOUR VIEW: “Yesterday, we held the view that ‘there is scope for USD to test 158.50.’ We were also of the view that ‘a break of this level this not ruled out, but any further advance is highly unlikely to reach the major resistance at 159.00.’ Our view was validated as USD rose to 158.54, closing at 158.35 (+0.21%). Despite slowing upward momentum, there is room for USD to 158.65 before a pullback can be expected. USD is still unlikely to reach the major resistance at 159.00. On the downside, support levels are at 158.00 and 157.70.”
1-3 WEEKS VIEW: “There is not much to add to our update from Tuesday (07 Jan, spot at 158.15). As highlighted, ‘upward momentum is building, and we expect USD to trade with an upward bias.’ We also highlighted that, ‘any advance is expected to face significant resistance at 159.00.’ We continue to hold the same view, provided that 157.20 (‘strong support level previously at 156.80) is not breached.”
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