According to market strategist Quek Ser Leang and senior currency strategist Peter Chia of UOB Group, further gains could take USD/JPY to 149.50 sooner rather than later.
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24 hour view: After USD/JPY bounced to a high of 148.43 last Friday, we noted yesterday that “the USD/JPY bounce has room to extend, but is unlikely to break clearly above 149.00.” In line with our expectations, USD/JPY rose but did not break 149.00 (high at 148.97). The bullish momentum has improved, although not by much. Today, USD/JPY is likely to advance above 149.00. However, the main resistance at 149.50 is likely out of reach (there is another resistance at 149.20). Support is at 148.60. A break of 148.30 would mean USD/JPY does not advance further.
Next 1-3 weeks: Yesterday (September 25, USD/JPY at 148.40), we indicated that although bullish momentum has improved, it is not enough to indicate that USD/JPY is ready to advance on a sustained basis. We also indicate that USD/JPY has to break and sustain above 149.00 before a further advance is likely. During the American session, USD/JPY reached a high of 148.97. While there is no clear break of 149.00, the bullish momentum has improved further. From here, as long as USD/JPY holds above 147.80 (the “strong support” level was at 147.40 yesterday), it could advance to 149.50.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
