USD/JPY: Expected to trade in a range between 146.50 and 149.50 – UOB Group
US Dollar (USD) could continue to rebound vs Japanese Yen (JPY), but it does not seem to have enough momentum to break above 148.80. In the longer run, downward momentum has largely faded; USD is expected to trade in a range between 146.50 and 149.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Downward momentum has largely faded
24-HOUR VIEW: "Although we indicated yesterday that USD 'could continue to decline', we pointed out, 'it remains to be seen if it has enough momentum to reach 146.05.' We added, 'To sustain the momentum, USD must remain below 147.60.' USD subsequently fell less than expected (low of 146.52) and then staged a surprisingly robust rebound (high of 148.11). Today, USD could continue to rebound, but currently, it does not seem to have enough momentum to break above 148.80. Support is at 147.50, followed by 147.00."
1-3 WEEKS VIEW: "After holding a negative USD view since late last week, we indicated yesterday (11 Mar, spot at 146.80) that it 'is expected to continue to decline, and the next technical target is at 146.05'. We did not anticipate the strong rebound that reached 148.11. While our ‘strong resistance’ level at 148.25 has not been breached yet, downward momentum has largely faded. From here, we expect USD to trade in a range between 146.50 and 149.50."
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