According to Quek Ser Leang, Market Strategist at UOB Group, and Lee Sue Ann, Economist, further bullish momentum could lift USD/JPY to its next target of 152.50 in the coming weeks.
Featured comments
24-hour outlook: Yesterday we highlighted that USD/JPY “could rise to 151.15 before the risk of a more sustained pullback increases.” We also noted that “151.30 is unlikely to be on the horizon.” The predicted strength of USD/JPY exceeded our expectations as it reached a high of 151.38. Further strength in USD/JPY is not ruled out, but the bullish momentum is not exactly strong, and it remains to be seen if USD/JPY can break above last week’s high near 151.80. Support lies at 151.10. A break of 150.90 would indicate that the current bullish pressure has eased.
Next 1-3 weeks: Yesterday (November 9, USD/JPY at 150.80), we indicated that “bullish momentum has increased only slightly.” We add that USD/JPY “needs to break clearly above 151.30 before a sustained advance is likely.” USD/JPY then rose to a high of 151.38. Although we prefer a more “impulsive” breakout of 151.30, the price action suggests that the risk of USD/JPY breaking above last week’s high near 151.80 has increased. Note that this level is not far below last year’s high, near 151.95. If USD/JPY manages to break above this solid resistance zone, it is likely to continue rising towards 152.50. To maintain the momentum, USD/JPY must stay above 150.40 in the coming days.
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.
