Continuation of the bullish bias could push USD/JPY to the 135.00 region ahead of 135.50according to the Economist Lee Sue Ann and the Market Strategist Quek Ser Leang of UOB Group.
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24 hour view: “We signaled yesterday that ‘high has firmed up slightly’ and expected USD/JPY to rise. However, we were of the view that ‘major resistance at 134.00 is unlikely in sight’. USD/JPY expected strength exceeded our expectations, as the pair shot above 134.00 (134.35 high) before pulling back.Despite the pullback, bullish momentum remains strong and there is scope for USD/JPY to break above 134.35.Resistance is likely, however 135.00 is out of reach today. Support is at 133.55, followed by 133.20”.
Next 1-3 weeks: “Yesterday (Feb 14, USD/JPY at 132.90), we noted that “upside momentum seems to be consolidating and there is room for USD/JPY to rise.” We added that “main resistance at 134.00 might not be in sight as soon as soon.” While our view that the pair would strengthen was correct, we did not anticipate rapid pace acceleration as USD/JPY topped out at 134.35. Not surprisingly, bullish momentum has continued to improve and USD/JPY is likely to “JPY continue to advance. Next level to watch is 135.00, followed by 135.50. To the downside, a break of 132.40 (“strong support” level was at 131.40 yesterday) would indicate that the current bullish pressure has eased.”
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.
