US Greenback (USD) might rise and check 148.75 in opposition to Japanese Yen (JPY); a break above this stage shouldn’t be dominated out, however USD is unlikely to threaten 149.20. Within the longer run, USD is prone to commerce in a spread, most likely between 147.20 and 149.20, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
USD is unlikely to threaten 149.20
24-HOUR VIEW: “Final Friday, USD dropped to a low of 146.71 after which rebounded. Yesterday, we acknowledged that “whereas USD might rebound additional, provided that there was no important improve in momentum, any advance is prone to be half of a better vary of 147.20/148.25.” We weren’t flawed, as after dipping to a low of 147.33, USD rose and reached a excessive of 148.25. USD closed on a agency observe at 148.14 (+0.28%). This time round, there was a rise in upward momentum, and USD might rise and check the 148.75 resistance stage at this time. A break above this stage shouldn’t be dominated out, however primarily based on the present momentum, any additional advance is unlikely to threaten the foremost resistance at 149.20. On the draw back, if USD breaks beneath 147.65 (minor assist is at 147.95), it might point out that it isn’t rising additional.”
1-3 WEEKS VIEW: “Final Monday (04 Aug, spot at 147.25), we highlighted that ‘the sharp drop in USD from final Friday has scope to increase, however any decline might not break beneath 145.80’ After USD traded in a spread for a number of days, we indicated yesterday (11 Aug, spot at 147.70) that ‘downward momentum is slowing, and the probability of USD dropping additional is diminishing.’ We added, ‘a break above 148.20 (‘sturdy resistance’ stage) would point out that USD is prone to commerce in a spread fairly than dropping additional.’ USD subsequently rose to a excessive of 148.25. As acknowledged, the breach of our ‘sturdy resistance’ stage signifies that USD is prone to commerce in a spread, most likely between 147.20 and 149.20.”
