Additional gains are likely to occur in the USD/JPY once the pair breaks above the 137.85 level in the coming weeks, say UOB Group FX Strategists Lee Sue Ann and Quek Ser Leang.
24 hour outlook: “Last Friday, the USD soared to a high of 137.23 before closing strongly at 136.93 (+0.77%). No wonder conditions are overbought, but the USD advance seems to have enough momentum to extend more. However, the Major resistance at 137.85 is probably out of reach for today (there is another resistance at 137.50). Support is at 136.80 followed by 136.40″.
Next 1-3 weeks: “Last week’s strong USD advance is likely to extend to 137.85. Further extension not ruled out but USD needs to break major resistance at 137.85 before further strength is likely. Overall, the risk for the USD is to the upside as long as it does not move below the ‘strong support’ level, currently at 135.90.”
Source: Fx Street
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