US Greenback (USD) might advance additional towards Japanese Yen (JPY); the key resistance at 149.20 is unlikely to come back below menace. Within the longer run, worth motion signifies that USD might rise towards 149.20, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
USD can eye a transfer towards 149.20
24-HOUR VIEW: “USD rose to a excessive of 147.94 final Friday. Yesterday (Monday), when it was at 147.75, we indicated that ‘there’s room for USD to rise additional, however any advance is probably going a part of a 147.25/148.25 vary.’ Nonetheless, USD soared to a excessive of 148.57 earlier than closing greater for the third straight day (148.53, +0.59%). Whereas the sharp rise over the previous few days seems overstretched, USD might advance additional as we speak. That stated, the key resistance at 149.20 is unlikely to come back below menace. Be aware that there’s one other resistance stage at 148.90. On the draw back, assist ranges are at 148.25 and 147.95.”
1-3 WEEKS VIEW: “Following final Friday’s worth motion, we indicated the next yesterday (28 Jul, spot at 147.75): ‘Upward momentum is beginning to construct, however it’s not sturdy sufficient to point a sustained rise simply but. For a continued advance, USD should first shut above 148.25. The probability of USD closing above 148.25 will stay intact so long as 146.65 (‘sturdy assist’ stage) will not be breached. Trying forward, if USD have been to interrupt clearly above 148.25, it might doubtlessly result in a transfer towards 149.20.’ USD then soared and closed at 148.53. The worth motion signifies that USD might rise towards 149.20. The ‘sturdy assist’ stage is now at 147.40 as a substitute of 146.65.”
