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USD/JPY: A sustained move above 148.40 does not look favorable – UOB

In the opinion of economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group, further gains beyond 148.40 still seem unlikely for USD/JPY.

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24 hour view: Our view that USD/JPY would consolidate last Friday was incorrect. Instead of consolidating, USD/JPY rose to a high of 147.96. Despite the advance, the bullish momentum has not improved much. Today, USD/JPY could rise, but the main resistance at 148.40 is probably out of reach (there is another resistance at 148.15). Support is at 147.60, followed by 147.40.

Next 1-3 weeks: Last Friday (September 15, USD/JPY at 147.30), we noted that “bearish pressure is easing, and the odds of USD/JPY pulling back further have diminished.” During the American session, USD/JPY rose by above our “strong resistance” level of 147.80 (high was 147.96). Not only did the bearish momentum fade, but the bullish momentum also increased, although not by much. From here, as long as USD/JPY remains above 146.85, USD/JPY could rise towards 148.40. At the moment, the probability of a sustained rise above this level is not high.

Source: Fx Street

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