USD/JPY faces a possible move beyond 140.00 – UOB

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According to UOB Group strategists Lee Sue Ann and Quek Ser Leang, additional earnings could lift the USD/JPY above the 140.00 level in the short term.

24 hour outlook: “We expected the USD to trade sideways between 138.10 and 139.10 yesterday. Subsequently, the USD traded between 138.25 and 139.00 before closing at 138.96. The USD spiked above 139.00 during early Asian hours. Rapidly improving momentum is likely to lead to further USD strength towards 140.00. A breakout of this main resistance is not ruled out. The next resistance is found at 140.50. Upside risk is intact as long as the dollar does not move below 139.60 (minor support is at 138.90).”

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Next 1 to 3 weeks: “Earlier this week we turned positive on the USD. In our last account yesterday (Aug 31, pair at 138.65), we indicated that the outlook for the USD remains positive, but main resistance at 139.50 might not come into the picture so soon.USD subsequently closed at 138.96 before jumping above 139.00 during the early Asian session today.Momentum suggests USD could move up to 140.00, 140.50. To the downside, a break of 138.00 (‘strong support’ level was 137.40 yesterday) would indicate that the greenback is unlikely to advance further.”

Source: Fx Street

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