USD/JPY: SUSTAINED GAINS LIE ABOVE 151.30 – UOB

Further upside in USD/JPY now needs to clear the 151.30 level, note Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: We indicated yesterday that “there is room for USD to test 150.80 before levelling off.” We also indicated that “a sustained rise above this level is unlikely.” USD rose more than expected to 151.05. Upward momentum has increased, albeit not much. Today, USD could edge higher to 151.15 before the risk of a more sustained pullback increases. The major resistance at 151.30 is unlikely to come into view. On the downside, if USD breaks below 150.40 (minor support is at 150.60), it would mean that the current upward pressure has eased

Next 1-3 weeks: Yesterday (08 Nov, spot at 150.40), we indicated that USD “could rise above 150.80, but it has to break clearly above 151.30 before a sustained advance is likely.” USD then rose above 150.80 and reached a high of 151.05. Upward momentum has increased just a tad. For now, we continue to hold the same view that USD has to break clearly above 151.30 before a sustained advance is likely.