USD/JPY: Likely to trade in a higher trading range of 144.50/145.50 – UOB Group
Slight increase in upward momentum is likely to lead to a higher trading range of 144.50/145.50. In the longer run, increase in momentum is not sufficient to indicate a sustained advance just yet; USD must first break and hold above 145.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Increase in momentum is not sufficient to indicate a sustained advance
24-HOUR VIEW: "We expected USD to 'consolidate in a range of 144.00/145.00' yesterday. However, USD traded in a higher range of 144.38/145.29. The price movements have resulted in a slight increase in upward momentum, but this is likely to lead to a higher trading range of 144.50/145.50 instead of a sustained advance. In other words, USD is unlikely to break clearly above 145.50."
1-3 WEEKS VIEW: "Last Wednesday (04 Jun, spot at 143.85), we stated that 'the recent price action suggests USD is still trading in a range, most likely between 142.10 and 145.50.' On Friday, USD soared to a high of 145.08. On Monday (09 Jun, spot at 144.70), we indicated that the increase in upward momentum is not sufficient to indicate a sustained advance just yet.' However, we pointed out that 'if USD were to break and hold above 145.50, it could potentially trigger a strong recovery.' We continue to hold the same view as long as the ‘strong support’ at 143.60 (level previously at 143.30) is not breached."