Improve in momentum might result in US Greenback (USD) breaking under 143.50 towards Japanese Yen (JPY); any additional decline is unlikely to achieve 142.70. Within the longer run, buildup in momentum might set off additional USD declines towards 142.70, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
USD should maintain under 144.85 to maintain the momentum buildup
24-HOUR VIEW: “Yesterday, when USD was at 144.45, we said that ‘the present value actions seem like a part of a spread buying and selling part, almost definitely between 144.05 and 145.00.’ Nevertheless, USD traded in a spread of 143.76/144.76 earlier than closing at 144.01, down by 0.44%. The value motion has resulted in a rise in downward momentum. As we speak, USD might break under the 143.50 help stage, however primarily based on the present momentum, any additional decline is unlikely to achieve 142.70. To maintain the momentum going, USD should not break above 144.45 (minor resistance is at 144.20).”
1-3 WEEKS VIEW: “Our most up-to-date narrative was from final Wednesday (25 Jun, spot at 144.85), by which we indicated that USD ‘seems to have moved into a spread buying and selling part, and is more likely to commerce between 143.50 and 146.50 in the interim.’ Yesterday, USD dropped to a low of 143.76. Downward momentum is starting to construct, and a break of 143.50 might set off additional declines towards 142.70. To maintain the momentum buildup, USD should maintain under 144.85.”
