The USD/JPY faces a possible move towards the 139.00 region in the coming weeks, say UOB Group FX strategists Quek Ser Leang and Peter Chia.
24 hour outlook: “The USD soared and closed at 137.52 (+0.75%) last Friday before jumping above 138.00 during Asian hours. Although the rapid rally seems to have been overdone, the strong bullish momentum suggests that the USD could continue to advance . Having said that, a break of 139.00 is unlikely for today (there is another resistance at 138.60). To the downside, a break of 137.70 (minor support is at 138.00) would indicate that the current upside pressure has eased.”
Next 1 to 3 weeks: “Last Wednesday (Aug 24, pair at 137.00), we highlighted that the USD could trade choppy, probably within a wide range of 135.20/138.00. Today the USD has broken above 138.00 and the rapid momentum is likely to lead to a rally to 139.00. To maintain the rapid build-up of momentum, the USD should not move below 137.25 (‘strong support’ level) these days.”
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
