There is still room for USD/JPY to visit the 148.00 region on the near term horizonaccording to the economist Lee Sue Ann and the market strategist Quek Ser Leang of UOB Group.
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24 hour view: Although we had expected USD/JPY to rise yesterday, we were of the opinion that it “is unlikely to break the main resistance at 147.20”. USD/JPY not only broke above 147.20, but continued higher and closed at a 10-month high at 147.71 (+0.85%). The solid bullish momentum suggests a continuation of USD/JPY strength. In view of the overbought conditions, it seems unlikely that USD/JPY can reach 149.00 today (there is another resistance at 148.30). To maintain momentum, USD/JPY needs to stay above 147.00 (minor support is at 147.30).
Next 1-3 weeks: After USD/JPY pulled back from 147.36 last Thursday (August 30, USD/JPY at 146.00) we noted that it “probably trades in a range between 144.50 and 147.20”. USD/JPY then fell slightly below 144.50 and touched 144.43 before bouncing. Yesterday, USD/JPY took off and reached a high of 147.80. Price developments suggest that USD/JPY will continue to rise, probably as high as 148.00. To maintain the rapid momentum, USD/JPY must stay above 146.45.
Source: Fx Street
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