USD/JPY: To test the major resistance at 144.00 – UOB Group
|The US Dollar (USD) has potential to test the major resistance at 144.00. In the longer run, upward momentum is building; if USD can break above 144.00, it could trigger a stronger recovery towards 145.50, UOB Group FX analysts Quek Ser Leang and Victor Yong note.
USD/JPY can test 144.00 near term
24-HOUR VIEW: “Yesterday, we held the view that ‘as long as USD remains above 140.90, it could test 142.80 before leveling off.’ The subsequent price action did not turn out as we expected, as USD plummeted briefly to 140.43 in NY trade and then surged to close largely unchanged at 142.27 (-0.09%). USD continues to advance in early Asian trade today and could potentially test the major resistance at 144.00. On the downside, support can be found at 141.70 (minor support is at 142.40).”
1-3 WEEKS VIEW: " We indicated yesterday (18 Sep, spot at 142.00) that the recent USD weakness has stabilised. We expected USD to trade in a range between 140.00 and 144.00. USD traded on a firm note in Asian trade today, and upward momentum is building. From here, if it can break clearly above 144.00, it could trigger a stronger recovery towards 145.50. The likelihood of USD breaking clearly above 144.00 will remain intact, provided that the ‘strong support’ level at 141.00 is not breached.”
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