The US Dollar (USD) could trade with a downward bias; as momentum is not strong, any decline is unlikely to break clearly below 151.50. In the longer, USD advance from early last month has ended; it must break and remain below 151.05 before a more sustained decline can be expected, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
USD/JPY unlikely to break clearly below 151.50
24-HOUR VIEW: “Our view of USD ‘dropping further’ last Friday was incorrect, as it traded in a volatile manner between 151.77 and 153.09. Although it closed on a strong note at 152.98 (+0.62%), it dropped sharply upon opening today. Despite the choppy price movements, downward momentum has increased somewhat. Today, USD could trade with a downward bias, but momentum is not strong, any decline is unlikely to break clearly below 151.50. The major support at 151.05 is unlikely to come under threat. On the upside, resistance levels are at 152.55 and 153.00.”
1-3 WEEKS VIEW: “We indicated last Friday (01 Nov, spot at 152.05) that ‘The USD advance from early last month has ended.’ We added, ‘downward momentum is beginning to build, but USD has to break and remain below 151.05 before a more sustained decline can be expected.’ The chance of USD breaking clearly below 151.05 will increase in the next few days as long as 153.35 is not breached. We continue to hold the same view.”
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