USD/JPY: To rise to the major resistance at 153.40 – UOB Group

Potential for the US Dollar (USD) to rise to the major resistance at 153.40; the major resistance at 154.00 is likely out of reach for now. In the longer run, upward momentum remains strong; the next level to monitor is 153.40, followed by 154.00, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The next level to monitor is 153.40

24-HOUR VIEW: “We expected USD to trade in a range between 151.20 and 152.55 last Friday. JPY subsequently traded in a 151.44/152.37 range, closing at 152.30. USD opened on strong note in early Asian trade today. While the sudden and sharp rise appears to be running ahead of itself, there is potential for USD to rise to the major resistance at 153.40. The major resistance at 154.00 is likely out of reach for now. On the downside, support levels are at 152.40 and 152.00.”

1-3 WEEKS VIEW: “We have expected a higher USD since early this month. As we tracked the advance, in our most recent narrative from last Thursday (24 Oct, spot at 152.60), we indicated that ‘upward momentum remains strong, and the next level to monitor is 153.40, followed by 154.00.’ There is no change in our view. Overall, only a breach of 151.50 (‘strong support’ level previously at 151.00) would signal an end to the USD strength.”