US Greenback (USD) is more likely to consolidate in a 144.00/145.15 vary towards Japanese Yen (JPY). Within the longer run, improve in momentum isn’t enough to point a sustained advance simply but; USD should first break and maintain above 145.50, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Enhance in momentum isn’t enough to point a sustained advance
24-HOUR VIEW: “USD traded in a uneven method final Thursday. On Friday, we highlighted that ‘regardless of the uneven worth motion, there was a slight improve in upward momentum.’ We additionally highlighted that ‘as an alternative of a sustained rise, USD is extra more likely to commerce in the next vary of 142.95/144.40.’ We didn’t anticipate USD to interrupt above 144.40 and soar to 145.08. The speedy rise seems to be extreme, and as an alternative of anticipating USD to proceed to rise, we now maintain the view that USD is extra more likely to consolidate in a 144.00/145.15 vary.”
1-3 WEEKS VIEW: “In our most up-to-date narrative from final Wednesday (04 Jun, spot at 143.85), we acknowledged that ‘the current worth motion ‘suggests USD continues to be buying and selling in a variety, most definitely between 142.10 and 145.50.’ Final Friday, USD soared to a excessive of 145.08 earlier than closing on a powerful be aware at 144.85 (+0.93%). The rise in upward momentum isn’t enough to point a sustained advance simply but. Nevertheless, if USD had been to interrupt and maintain above 145.50, it might doubtlessly set off a powerful restoration. The probability of USD breaking clearly above 145.50 will stay intact, offered that the ‘robust assist’ stage, at the moment at 143.00, isn’t breached.”
