According to UOB Group currency strategists Lee Sue Ann and Quek Ser Leang, If USD/JPY continues to rise, it could revisit the 131.65 level In the next weeks.
Key comments
24 hour view: “We expected USD/JPY to strengthen last Friday, but were of the opinion that ‘131.25 is unlikely to be threatened’. USD/JPY subsequently rose as high as 130.80 before extending its advance during early Asian hours. Upside momentum suggests USD/JPY could break above 131.25. Next resistance at 131.60 is not expected to come into the picture. Support is found at 130.55, followed by 130.30.”
Next 1-3 weeks: “Last Friday (May 6, USD/JPY at 130.40), we highlighted that there is room for USD/JPY to retest 131.25. So far, our view has not changed. That said, momentum has improved further and a clear break of 131.25 would open the way for USD/JPY to move further towards 131.65 Overall, only a break of 130.00 (the ‘strong support’ level was at 129.60 last Friday) would indicate that the upside momentum has subsided .
Source: Fx Street
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