There may be room for US Greenback (USD) to rise additional towards Japanese Yen (JPY), however a sustained break above 149.30 is unlikely. Within the longer run, situations stay overbought, however sturdy momentum could proceed to hold USD greater; the following degree to watch is 149.80, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Robust momentum could proceed to hold USD greater
24-HOUR VIEW: “Whereas we indicated yesterday that ‘additional USD energy just isn’t dominated out,’ we highlighted that ‘obvious unfavourable divergence suggests any advance is unlikely to interrupt above the key resistance at 148.05.’ We didn’t anticipate the surge in momentum that overwhelmed the overbought situations, as USD soared to a excessive of 149.01. Circumstances are deeply overbought, and in the present day, whereas there’s room for USD to rise additional, a sustained break above 149.30 is unlikely. The foremost resistance at 149.80 can also be unlikely to become visible. On the draw back, if USD breaches 148.30 (minor assist is at 148.50), it could imply that upward momentum is fading.”
1-3 WEEKS VIEW: “We turned optimistic on USD early final week (see annotations within the chart beneath). In our most up-to-date narrative from two days in the past, we indicated that “whereas we preserve our optimistic view, overbought situations counsel a slower tempo of advance, and the following main resistance at 148.05 (close to final month’s excessive) could not come into the image so quickly.” Nonetheless, USD reached 148.05 before anticipated because it soared to a excessive of 149.01 within the NY commerce yesterday. Though situations stay overbought, sturdy momentum could proceed to hold USD greater. The following degree to watch is 149.80. To maintain the overbought momentum, USD should maintain above 147.65 (‘sturdy resistance’ degree was at 146.70 yesterday).”
