USD/JPY: A sustained advance is expected above 151.00 – UOB

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group see a more convincing upside in USD/JPY needs to clear the 151.00 barrier.

Key Quotes

24-hour view: Yesterday, we held the view that USD “could rise above 150.50, but it is unlikely to be able to maintain a foothold above this level.” In Asian trade, USD rose briefly to 150.77 and plummeted to 149.88 before trading sideways for the rest of the sessions. The price action has resulted in a mixed outlook. Today, USD could trade in a range between 149.90 and 150.70. 

Next 1-3 weeks: We highlighted yesterday (26 Oct, spot at 150.25) that while upward momentum is beginning to improve, in order for USD to advance in a sustained manner, it must break and stay above 150.50. USD then rose to a high of 150.77 before closing at 150.38 (+0.11%). Upward momentum has not improved further, and the resistance level has moved higher. From here, USD has to break clearly above 151.00 before a sustained advance is likely. The risk of USD breaking clearly above 151.00 will remain intact as long as USD stays above 149.35 in the next couple of days.