USD/JPY: A slight chance to break above 161.30 – UOB Group

The US Dollar (USD) is likely to trade in a sideways range between 160.30 and 161.30, because USD strength from the middle of last month has come to an end, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.

USD is set to break above 161.30

24-HOUR VIEW: “After USD fell to a low of 160.33 and rebounded last Friday, we indicated yesterday that ‘provided that USD remains below 161.15, USD could drop further to 160.20 before stabilisation can be expected.’ USD subsequently dropped to 160.25, rebounded to 161.11, and then closed largely unchanged (160.81, 0.06%). Downward pressure is easing, and instead of dropping further, USD is likely to trade in a sideways range between 160.30 and 161.30 today.”

1-3 WEEKS VIEW: “Our update from yesterday (08 Jul, spot at 160.65) still stands. As highlighted, the USD strength from the middle of last month has come to an end. The current price movements are likely part of a range trading phase. For the time being, USD is likely to trade between 159.40 and 161.80.”